A senior Labour minister has indicated that the Government will bow to pressure from Nissan and other carmakers to water down electric vehicle targets. Nissan, which employs thousands of people at its Washington plant, has been among the automotive giants pressuring politicians to relax regulations on the rollout of zero-emission vehicles (ZEVs) and previously warned that a failure to do so could put its future in the UK in doubt.
Government review could scale back 2030 target
Under current rules, manufacturers can face heavy fines if they do not ensure that a certain percentage of cars sold every year are ZEVs – rising from 33% this year to 80% by 2030, ahead of a total ban on the sale of new petrol and diesel cars from 2035. But the Government has now launched a review that could see the 2030 target scaled back, potentially to as little as 50%, despite criticism from climate activists at a time of record temperatures and droughts.
Business secretary Jonathan Reynolds told the Local Democracy Reporting Service on Tuesday that the UK had to “remain internationally competitive” to retain jobs in the carmaking sector. News agency Reuters reported in June that the Government was in talks with Nissan about providing financial support in return for a long-term commitment to its Sunderland factory, with the deal dependent on an easing of the ZEV mandate.
Minister: ‘We have to remain internationally competitive’
Mr Reynolds, who is from Houghton-le-Spring, said: “We are changing the regulations around electric vehicles and consultation is open to make sure it is working. A lot of other countries have changed theirs and we have to remain internationally competitive.” Speaking on a visit to semiconductor manufacturer Pragmatic in Durham, the business secretary said Nissan was “never far from my mind” and that he wanted to address “the capacity of the plant and what more could be done there”.
He added: “I want the transition to electric vehicles and Nissan has led the way with the Leaf, a brilliant vehicle. But you have got to work with consumers and benchmark what you are doing with other parts of the world. I actually think the overall level of adoption of electric vehicles in the UK is a remarkable story, in terms of the standing start to where we are at. But there have been a lot of changes that have led other countries to change their regulations, the growth of Chinese exports is a major part of that.
“There has always been a review factored into this and you are working pragmatically with where the customer is at, where the sector is at. But people should not see this as any sort of negative on British manufacturing and the automotive sector. The products are brilliant, the level of adoption is high. We have just got to make sure that when we are talking about this significant move to electric vehicles, I want them made in the UK. We want to continue that strength, it is one of the jewels in the crown of our advanced manufacturing sector and I will always be interested in what is the most supportive environment to do that.”
Nissan’s UK footprint and consultation response
Nissan employs around 6,000 people on Wearside but has endured a period of turmoil globally, posting significant losses. The Japanese firm plans earlier this year to cut around 900 jobs in Europe and merge two production lines in Sunderland, though manufacturing jobs in the North East were not thought to be at risk. It also recently struck an agreement that could see Chinese car manufacturer Chery’s vehicles produced at the Washington facility.
A Government consultation on a review of the ZEV mandate was launched earlier this month and will run until October. Environmental groups have criticised the potential watering down of ZEV targets and urged Andy Burnham not to go ahead with the change. The Energy and Climate Intelligence Unit (ECIU) thinktank claimed that cutting the 2030 target from 80% to 50% could reduce the number of new electric vehicles on UK roads by 5.8 million and cost families £23.6 billion cumulatively by 2050 due to fuel prices. Its head of transport, Colin Walker, said earlier this month: “At a time when the PM is on a cost of living tour, with pump prices up due to another war-driven oil and gas crisis, incentivising the industry to slow the sale of EVs will lead to higher costs of living for families across the UK, given electric cars can save hundreds, even thousands, of pounds a year in running costs, and are now no more expensive to buy then a petrol car.”
