Business secretary Jonathan Reynolds has told the motor manufacturing industry that the government will push ahead with a short consultation on the ZEV Mandate, following discussions last week.
It comes after Reynolds told MPs in front of the parliamentary Business and Trade Select Committee yesterday that he didn’t believe the ZEV Mandate was working.
Later, he told the SMMT annual trade dinner that the government had heard the sector “loud and clear” and would be launching a short consultation on the scheme.
But it was also reiterated that the Labour administration was still committed to bringing forward the end date for ICE new vehicle sales to 2030, after it was pushed back to 2035 by the previous Conservative government.
Reynolds told the Business and Trade Select Committee: “We’ve got to be willing to (look at it). Not in a way that undermines the destination, but let’s look at what it means right now for British vehicle manufacturing.
“Because I don’t think it is working right now as anyone intended it to.”
Reynolds appearance at the committee came at the same time that Stellantis announced plans to close its Luton production plant, and invest £50m instead in its Ellesmere Port facility for electric vehicle production, where it said it was committed to the “stringent” requirements of the UK ZEV Mandate.
The OEM specifically blamed electric vehicle demand for the closure of its Vauxhall van plant, which has been at the site for 120 years. As many as 1,100 jobs are at risk from the move, although the firm said it was hoping to transfer a significant amount to its Cheshire location, and it is now in consultation with unions and employees on the move.
The transport and energy sectors have offered mixed views on the news, with ChargeUK stating yesterday it would be “foolish” to change it, and lobby group Electric Vehicles UK describing the mandate as “world-leading legislation“. Quentin Willson from FairCharge called on the government to not let legacy automotive firms ruin the mandate, which he also described as world-leading.
Paul Hollick, chair of the Association of Fleet Professionals (AFP), welcomed the move, and said it was positive that the consultation would be “concluded quickly”. But he also issued a word of warning.
He said: “The real test of the government will lie in the changes that it chooses to make. From a fleet point of view, we believe that while the car element of the ZEV Mandate requires some moderation, vans are the real issue.
“It’s potentially a concern that the government says it remains fully committed to the 2030 deadline for ending pure petrol and diesel sales because there will probably need to be some flexibility, even if just around the definition of hybrids. Fine tuning the ZEV Mandate probably won’t improve the overall situation. Instead, more direct, radical action is needed if we’re to avoid more factory closures of the type announced by Stellantis today.”
Fiona Howarth, CEO of Octopus Electric Vehicles, said the mandate “was working” and changing it would be “shooting ourselves in the foot” with EV sales up significantly. She also highlighted the significant economic imperatives to go electric, and current business commitments.
She said: “The government has two clear aims – to keep rolling out clean electric cars, and make many of them. The ZEV mandate is working – sales are up by 14%, and every second driver today wants their next car to be electric.
“EVs are already six times cheaper to run than petrol cars for those with a driveway, and private investors have committed £6bn to further strengthen the public charging network.
“Manufacturers that failed to invest in the future are now facing challenges. To secure long term jobs in the sector, the government must hold firm on the ZEV mandate and invest in targeted support for manufacturers committed to the electric transition and jobs in the UK.
“Changing the mandate would mean shooting ourselves in the foot by bowing to the pressure of a few laggard companies.”
Image from Shutterstock
