Nissan warned ministers last night that zero-emission vehicle targets will have an “irreversible impact” on the British car industry.
Just hours after holding crisis talks with the Government, the Japanese manufacturer said electric vehicle quotas would put thousands of jobs and billions of pounds of investment at risk.
And while the urgent meeting was underway, Ford revealed plans to cut 4,000 jobs across Europe, including 800 positions in the UK, amid falling electric car sales.
But despite tough warnings from industry leaders, ministers yesterday doubled down on their proposals to introduce green targets just minutes after concluding crucial talks.
Guillaume Cartier, president of Nissan’s Africa, Middle East, India, Europe and Oceania region, said: “It risks undermining the business case for making cars in the UK and the viability of thousands of jobs and billions. of pounds in investments.
“We now need urgent action from the Government before the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
Nissan employs around 7,000 people in the UK, including 6,000 at the country’s largest car manufacturing plant in Sunderland.
More than 198,000 workers are directly employed in the overall automotive manufacturing sector, and some 813,000 work in the supply chain.
Nissan warned ministers last night that zero-emission vehicle targets will have an “irreversible impact” on the British motor industry.
Nissan employs around 7,000 people in the UK, including 6,000 at the country’s largest car manufacturing plant in Sunderland.
Nissan said yesterday that the Government’s electric car plan “undermines the business case for making cars in the UK”, casting further doubt on the future of the industry in the UK.
It comes after Vauxhall owner Stellantis threatened this summer to close its Ellesmere Port and Luton plants over quotas for zero-emission vehicles.
Automakers have long expressed concerns about the Zero Emissions Mandate, which will force them to increase the proportion of electric vehicles they sell each year until the sale of new gasoline and diesel engines is banned.
According to the targets, electric vehicles should account for 22 percent of a company’s car sales and 10 percent of van sales this year.
The threshold will increase annually. For each sale outside that target, the company must pay a fine of £15,000.
The Society of Motor Manufacturers and Traders (SMMT) has warned that companies are likely to miss this year’s targets.
Meanwhile, the Labor Party wants to ban fossil fuel-burning cars by 2030, five years ahead of the target set by former Conservative prime minister Rishi Sunak.
Manufacturers support the push toward Net Zero, but a lack of demand for electric cars among drivers has left companies struggling to make the investment.
Labor wants to ban fossil fuel-burning cars by 2030, five years ahead of the target set by former Conservative prime minister Rishi Sunak.
Labor wants to ban fossil fuel-burning cars by 2030, five years ahead of the target set by former Conservative prime minister Rishi Sunak.
Nissan employs around 7,000 people in the UK, including 6,000 at the country’s largest car manufacturing plant in Sunderland.
High prices and a lack of charging points have discouraged drivers.
OpenReach chief executive Clive Selly told the BBC yesterday that public charging infrastructure in the UK was “insufficient and unreliable”.
Carmakers had hoped the meeting with Business Secretary Jonathan Reynolds, Transport Secretary Lou Haigh and Energy Minister Michael Shanks would result in the mandate being watered down or more incentives introduced.
The meeting was attended by motor giants BMW, Volkswagen, Ford, Stellantis and Toyota, as well as industry associations and charging infrastructure companies.
Announcing job cuts yesterday, Ford finance chief John Lawler said the company lacked “a clear and unambiguous policy agenda to promote electric mobility” in Europe.
The company’s plants in Dagenham and Halewood and its Southampton logistics base will not be affected by the redundancies, it said. Most of the positions at risk are administrative or product development roles.
Dave Johnston, Ford’s European director of transformation and partnerships, said: “Taking difficult but decisive steps is critical to ensuring Ford’s future competitiveness in Europe.”
It joined Volkswagen and Stellantis to present major cost-saving proposals related to weaker demand for electric vehicles.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “Today’s discussion with ministers was an important opportunity to reaffirm the UK automotive industry’s commitment to both economic growth and Net Zero.” .
“However, the industry has also made clear its concerns about the pace of the transition to electric vehicles and the negative effect this is having on the health of the wider market and the attractiveness of the UK as a manufacturing location.”
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