9:11 am, November 21, 2024
The ZEV mandate is back in the spotlight after Nissan called for ‘urgent action’ on the controversial sales quotas.
Automotive bigwigs yesterday held meetings with transport secretary Louise Haigh and business secretary Jonathan Reynolds to discuss the ‘negative effect’ the measures are currently having on carmakers.
In a statement released via the SMMT, the industry pledged to work with the Government to ‘identify any adjustments necessary’ but Nissan have now taken a more direct approach.
The Japanese brand says that, in its current form, the ZEV mandate means that ‘the UK automotive industry will effectively be subsidising EV sectors in other countries, at the expense of investment in Britain’.
The carmaker added that the measures ‘risk undermining the business case for manufacturing cars in the UK’, which could lead to ‘thousands’ of job losses.
In a lengthy statement, the firm called for increased flexibility on borrowing credits from future years in the short-term and a two-year monitoring period for 2024 and 2025 in place of ‘potentially devastating fines for the industry’.
Bosses say that the changes would allow companies to ‘plan accordingly’ and ‘ensure the UK can deliver on the 80% target by 2030, even amidst existing market headwinds’.
Guillaume Cartier, chairperson for the Nissan Africa, Middle East, India, Europe and Oceania region, said: ‘Nissan has consistently supported the aims of the UK’s ZEV Mandate and have been working with Governments and partners towards a fully electric future since the first Nissan Leaf arrived in 2010.
‘The mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment.
‘We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.’
Nissan execs held initial talks with Haigh earlier this week (Nov 18) before wider meetings with the automotive industry yesterday (Nov 20).
The latter was held hours after Ford announced it will cut about 800 roles across the UK and bosses are said to have expressed concerns that pushing ahead with the ZEV mandate in its current form could lead to wider job losses.
The Government says it ‘recognises global challenges the industry has been facing’ and promised to work ‘constructively’ to provide support.
A Government spokesperson said: ‘Ministers from across Government have met with automotive sector and industry representatives to discuss the transition to electric vehicles, and how the Government can support continued growth of the sector.
‘Recognising the global challenges the industry has been facing, ministers underlined the Government’s commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030.
‘The UK automotive sector now has the fastest growth of zero-emission vehicles of any major European market, and we’re providing more than £2.3bn to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.’
🔌While major auto manufacturers, and major nations, are committed to zero emission transport, the UK is playing a leading role as Europe’s second largest new electric car market by volume #drivezero pic.twitter.com/5bGlbSwf1d
— SMMT (@SMMT) November 20, 2024
Mike Hawes, chief executive of the SMMT added: ‘Today’s discussion with ministers was an important opportunity to restate the UK automotive industry’s commitment to both economic growth and Net Zero.
‘However, the industry also made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.
‘A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed.
‘We will now work urgently with government to identify any adjustments necessary to help the industry and government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.’
