Ford UK calls for incentives amid growing EV sales backlash
Ford UK has urged the government to introduce incentives to boost electric vehicle (EV) adoption, as tensions between the automotive industry and policymakers intensify over ambitious sales targets.
Lisa Brankin, Chair and Managing Director of Ford UK, told the BBC that mandating higher EV production and sales without fostering demand is unsustainable. “Without demand, a government mandate to produce and sell more EVs just doesn’t work,” she explained.
The automotive sector is increasingly critical of the government’s push to phase out new petrol and diesel cars. On Tuesday, Stellantis, the parent company of Vauxhall, announced plans to close its Luton plant, a move that threatens 1,100 jobs. The company cited the strain of meeting EV targets as a contributing factor.
Business Secretary Jonathan Reynolds called Stellantis’s decision “a dark day for Luton” during a House of Commons session. He blamed the previous government for creating a challenging environment for manufacturers, while reaffirming Labour’s commitment to a 2030 phase-out of petrol and diesel vehicles.
Ford is also scaling back its UK operations, announcing last week that it would cut 800 jobs over the next three years. The company attributed the decision partly to the EV mandate and increased competition.
Calls for Action
Ms. Brankin emphasized the need for government-backed incentives to encourage EV adoption. Speaking on BBC Radio 4, she noted that Ford has invested over £350 million in EV production and development in the UK. “We need to make it work,” she said, underscoring the company’s commitment to electrification.
Broader Challenges for UK Automotive
Ford and Stellantis have both previously expressed concerns about the UK as a manufacturing base, citing factors beyond EV policies. In 2020, Ford shut down its Bridgend plant, eliminating 1,644 jobs, with the company pointing to the pandemic as a key factor. Similarly, in 2019, Vauxhall’s former owner warned that Brexit posed risks to its Luton operations.
EV Mandate and Industry Pushback
The EV mandate requires manufacturers to ensure that a growing percentage of their sales come from zero-emission vehicles. Currently, EVs must account for 22% of car sales and 10% of van sales, with non-compliance resulting in fines of £15,000 per vehicle. These thresholds are set to rise annually until the complete ban on petrol and diesel vehicle sales.
While Labour has committed to reinstating the 2030 deadline, shadow business secretary Andrew Griffith criticized the current policy, describing it as a “jobs killer.” He attributed Stellantis’s decision to a government policy that he claimed is unworkable for the industry.
Moving Forward
The government has announced plans for a “fast track” consultation on enforcing EV targets. However, with industry concerns mounting and job losses looming, the path to transitioning the UK automotive sector to an electric future remains fraught with challenges.
