8:44 am, July 26, 2024
The SMMT has called for ‘flexibility’ in relation to Labour’s plan to reintroduce the 2030 ban on new petrol and diesel cars, saying many manufacturers would currently ‘struggle to comply’.
Sir Keir Starmer’s party pledged to reinstate the ban in the lead up to the election but made no mention of the policy in its recent King’s Speech.
Mike Hawes, CEO of the SMMT, says that ‘the devil is in the detail’ when it comes to whether or not going back to the ban would be a good thing for the automotive industry.
He has also called on the government to allow sales of hybrids to continue for longer if it does decide to resurrect the policy.
Asked if the sector would welcome the measure, Hawes replied: ‘When it comes to 2030, some manufacturers will want it, some will be more nervous, but it depends what it actually means.
‘As always, the devil is in the detail. Are you talking about a complete end of sale of everything that has an internal combustion engine?
‘Or are you looking at some flexibilities around hybrids or plug-in hybrids?”
He went on: ‘If it was fairly strict, a lot of manufacturers would struggle to comply. That wouldn’t be good for the consumer.’
The trade body chief went on to say that ‘everyone wants to achieve the same thing” when it comes to transitioning towards green vehicles, but the key issues are ‘what are the enablers in place’ and ‘what are the market conditions’.
He made the comments as the SMMT announced UK car production fell by 7.6% in the first six months of the year.
The body said this was ‘expected’ due to several car makers overhauling lines to make electrified models.
Factories turned out 416,074 new cars between January and June – 34,094 fewer than in the same period in 2023.
Car production down in first half as manufacturers invest in electric future
🚙car production dips -7.6% in first half of 2024 as manufacturers continue switch to electric models
⚡️Electrified vehicle production YTD also down -7.6% to 157,224 units, representing 37.8% of total… pic.twitter.com/YcnILxtSHY— SMMT (@SMMT) July 25, 2024
Earlier this month, Stellantis UK boss Maria Grazia Davino threatened to pull UK production if the incoming government doesn’t help the car industry out further.
The outspoken managing director said ending production at Ellesmere Port and Luton was something she would ‘have to consider’ if the new government doesn’t listen to the car industry.
She also called for the new government to put its hand in its pocket in order to incentivise electric car purchases.
Grazia Davino told Car Dealer: ‘If we are making progress in a way that is sustainable then of course I will defend the UK production operations.
‘If it’s going to be a bloodbath then it does not make sense, not only for Stellantis, but for anyone. And in this case I will have to take other decisions.’
You can watch our full interview with the Stellantis UK group MD on the Car Dealer YouTube channel.
