The UK will consult on sales targets for automakers during the transition to electric vehicles
Britain’s new Labour government will launch a consultation on sales targets set for auto manufacturers during the transition to electric vehicles
LONDON — Britain’s new Labour government will launch a consultation on auto manufacturers' sales targets during the transition to electric vehicles, following the decision by Stellantis, the owner of Vauxhall, to close its van factory in southern England at the potential cost of 1,100 jobs.
Business Secretary Jonathan Reynolds told lawmakers Wednesday that the problems encountered by Stellantis in the transition to electric vehicles are not unique, adding that the government will do all it can to prevent the plant's closure.
Stellantis blamed its decision Tuesday to close its plant in Luton on the U.K.'s “stringent” zero-emission vehicle mandate, or ZEV, which sets strict targets for manufacturers.
With demand in many parts of the world the world for electric vehicles weaker than anticipated, despite the discounts on offer, it is increasingly expensive for carmakers to turn a profit, especially with sluggish global growth and relatively high interest rates.
Other manufacturers across Europe, including Ford and Volkswagen, recently announced plans to close some operations in light of targets they are struggling to meet.
The mandate in the U.K. requires major car manufacturers to have zero-emission — in effect, purely electric — vehicles make up 22% of their sales fleet this year, increasing to 28% in 2025 and rising further in subsequent years. If a manufacturer does not hit the targets, it is fined 15,000 pounds ($19,000) for every vehicle that it sells that does not comply with the mandate.
The targets were laid out two years ago by the previous Conservative administration,
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