By Paul Homewood
Kicking the can down the road is no solution, Mr Reynolds!
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Labour is poised to water down electric vehicle (EV) rules amid a mounting crisis in the industry over the pace of the transition away from petrol and diesel cars.
Jonathan Reynolds, the Business Secretary, on Tuesday night confirmed a review of the Government’s zero emission vehicle (ZEV) mandate after warnings from carmakers that the rules were putting the industry’s future at risk.
Vauxhall said on Tuesday it was planning to close its Luton factory after 120 years of manufacturing at the site, putting more than 1,100 jobs at risk. Stellantis, which owns Vauxhall, said it was taking the decision “in the context of the ZEV mandate”.
It follows months of lobbying from carmakers, with Ford saying it would cut 800 UK jobs as it reduces EV production and Nissan demanding a private meeting with the Business Secretary amid fears it could leave the UK.
Meanwhile in Europe, governments are also under pressure to rein in EV targets, with Porsche saying on Tuesday it will stick with petrol engines for “much longer” than previously planned as it pulls back from electric cars.
Europe’s top carmakers suffered a further setback on Tuesday after more than €10bn (£8.9bn) was wiped off their value following Donald Trump’s announcement that he would impose tariffs against Canada, Mexico and China.
Mr Reynolds told bosses at an industry dinner on Tuesday that the Government will announce a fast-track consultation on changes to its ZEV mandate, which requires an ever-greater percentage of manufacturers’ sales to be electric over the next six years.
He said: “We are absolutely committed to our manifesto commitment of a 2030 phase-out for new cars powered solely by internal combustion engines. We are not changing our level of ambition for the transition, and there will be no repeat of the uncertainty generated by the previous administration.
“But at the same time, the Transport Secretary and I have heard you loud and clear on the need for support to make this transition a success, and that’s why we will be consulting with you on changes to the same mandate and inviting your views on options for a better way forward.”
The Government is expected to stress that a final 2030 deadline for new petrol and diesel sales is non-negotiable. However, it is also likely to suggest that carmakers will be able to delay cuts to petrol and diesel sales in the run-up to 2030, provided they make up for it by selling even more electric cars later on.
https://www.telegraph.co.uk/business/2024/11/26/britain-poised-to-water-down-electric-vehicle-rules/
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If that final sentence is true, he is merely wasting his time.
It would simply mean manufacturers borrowing from future allowances. In other words, they will have to pay their fines in a couple of years time, instead of now.
What Reynolds still has not appreciated is that if buyers don’t want an EV now, they are just as unlikely to in a few years time.
If he wants to avoid real damage to our car industry, he now needs to immediately abandon the ZEV mandate completely.