London, United Kingdom – Ford UK is urging the government to implement incentives to boost the purchase of electric vehicles (EVs), as the automotive industry raises concerns over sales targets. Lisa Brankin, Chair and Managing Director of Ford UK, emphasized the importance of stimulating demand for EVs to support the government’s mandate to increase production and sales of electric cars. This call for incentives comes amidst tensions between the government and the industry regarding the phase-out of new petrol and diesel cars in the coming years.
Stellantis, the parent company of Vauxhall, recently announced the closure of a plant in Luton, endangering 1,100 jobs, partly due to the EV sales targets. The decision has sparked criticism from Business Secretary Jonathan Reynolds, who described it as a “dark day for Luton.” Ford also announced job cuts in the UK, attributing some to the EV targets and increased competition in the market.
Brankin highlighted the need for government-backed incentives to accelerate the adoption of electric vehicles. She explained that Ford has made significant investments in EV production and development in the UK, totaling over £350m dedicated to electrification. The challenges faced by Ford and Stellantis in the UK are not solely related to EV targets, as external factors such as Brexit and the impact of the COVID-19 pandemic have also influenced their operations.
Industry analysts suggest that the shift towards luxury vehicles and away from cheaper models has contributed to Ford’s challenges. The government is facing criticism for the closure of the Stellantis plant in Luton, with opposing views on the feasibility of the 2030 phase-out target for new petrol and diesel vehicle sales. The Conservative government had previously extended the deadline to 2035 but maintained penalties for non-compliance.
Manufacturers are grappling with meeting the evolving EV targets, with some resorting to discounts and subsidies to meet requirements. The current rules mandate that a percentage of car sales must be zero-emission vehicles, with fines imposed on companies that fall short. Challenges in meeting these targets have raised concerns about the sustainability of the automotive industry and the potential impact on jobs.
The Society of Motor Manufacturers & Traders (SMMT) has called for government intervention to address the issues facing the sector. Nissan, a prominent EV manufacturer, has expressed concerns about the existing policies undermining the business case for car production in the UK. The debate over EV regulations and incentives continues as industry leaders seek solutions to ensure the viability of the automotive sector amid changing market dynamics.