(qlmbusinessnews.com Thurs. 28th Nov, 2024) London, UK —
Ford Urges Government Incentives for Electric Cars Amid Growing Industry Backlash
Ford UK has called on the government to introduce financial incentives to encourage the uptake of electric vehicles (EVs) as tensions escalate over ambitious sales targets. Lisa Brankin, Ford UK’s chair and managing director, warned that mandates to produce and sell more EVs would fail without stronger demand.
Brankin’s comments come amid widespread concerns within the automotive industry regarding the phase-out of new petrol and diesel car sales. Speaking on BBC Radio 4, she said Ford had invested over £350 million in UK electrification projects and urged immediate government action to support the market.
Her remarks coincide with significant job losses in the sector. Stellantis, the parent company of Vauxhall, announced this week it would close its Luton plant, putting 1,100 jobs at risk. Ford has also revealed plans to cut 800 UK jobs over the next three years, citing EV targets and fierce global competition.
EV Targets Under Scrutiny.
The current rules require 22% of a car manufacturer’s sales to be zero-emission vehicles in 2023, rising to 28% by 2025, with tougher quotas each year until a full ban on petrol and diesel car sales in 2030. Non-compliance could result in fines of £15,000 per vehicle.
While electric vehicle sales are increasing—accounting for one in five cars registered in October—industry insiders claim the rise is largely driven by unsustainable discounting. Manufacturers argue that consumer demand is lagging behind expectations, forcing them to subsidise sales or purchase credits from companies specialising in EVs, such as Tesla.
The Society of Motor Manufacturers and Traders (SMMT) has warned that the combination of weak demand and strict sales quotas could devastate the automotive industry, threatening jobs and business viability.
Political and Industry Divide.
Labour has pledged to reinstate the 2030 phase-out deadline for petrol and diesel cars but is reviewing how these targets will be enforced. Business Secretary Jonathan Reynolds admitted to “profound concerns” over the zero-emission policies but reaffirmed Labour’s commitment to climate goals.
Nissan, which produces EVs in Sunderland, has echoed industry concerns, stating the current system jeopardises manufacturing jobs and long-term investment in the UK. Proposals under consideration include allowing credits for British-made EVs sold abroad or flexibility in how sales targets are met across car and van categories.
As the UK automotive sector grapples with these challenges, Ford’s call for government-backed incentives highlights the urgent need for action to ensure the transition to electric vehicles supports both industry growth and consumer affordability.
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