Nissan last night warned ministers that zero-emission car targets will have an ‘irreversible impact’ on the UK 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 as the emergency meeting was underway, Ford unveiled plans to cut 4,000 jobs across Europe, including 800 jobs in Britain, amid falling sales of electric cars.
But despite stark warnings from industry leaders, ministers yesterday doubled down on their proposals to introduce green targets, just minutes after concluding crisis talks.
Guillaume Cartier, chairman of Nissan’s Africa, Middle East, India, Europe and Oceania region, said: ‘It threatens to undermine the business case for car manufacturing in Britain, and the viability of thousands of jobs and billions of pounds of investments.
‘We now need to see urgent action from the government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.’
Nissan employs around 7,000 people in Britain, including 6,000 at the country’s largest car factory in Sunderland.
More than 198,000 employees are directly employed in the wider automotive manufacturing sector, including approximately 813,000 in the supply chain.
Nissan warned ministers last night that zero-emission car targets will have an ‘irreversible impact’ on the UK car industry
Nissan employs around 7,000 people in Britain, including 6,000 at the country’s largest car factory in Sunderland
Nissan said yesterday that the government’s electric car plan ‘undermines the business case for car manufacturing in Britain’, casting further doubt over the future of the industry in Britain.
It comes after Vauxhall owner Stellantis threatened to close its factories in Ellesmere Port and Luton this summer over zero-emission vehicle quotas.
Automakers have long been concerned about the Zero Emissions Mandate, which will force them to increase the share of electric vehicles they sell annually until the sale of new gasoline and diesel engines is banned.
The targets call for electric vehicles to make up 22% of a company’s car sales and 10% of van sales this year.
The threshold will increase annually. For any sales outside that target, the company must pay a £15,000 fine.
The Society of Motor Manufacturers & Traders (SMMT) has warned that companies are unlikely to meet this year’s targets.
Meanwhile, Labor wants to ban fossil fuel cars by 2030, five years earlier than former Tory Prime Minister Rishi Sunak’s target.
Manufacturers are supporting the drive for Net Zero, but a lack of demand for electric cars among motorists has left companies struggling to make the investment.
Labor wants to ban fossil fuel cars by 2030, five years earlier than former Tory Prime Minister Rishi Sunak’s target
Labor wants to ban fossil fuel cars by 2030, five years earlier than former Tory Prime Minister Rishi Sunak’s target
Nissan employs around 7,000 people in Britain, including 6,000 at the country’s largest car factory in Sunderland
Motorists are deterred by the high prices and the lack of charging points.
Clive Selly, CEO of OpenReach, told the BBC yesterday that Britain’s public charging infrastructure is ‘insufficient and unreliable’.
Automakers had hoped the meeting with Business Secretary Jonathan Reynolds, Transportation Secretary Lou Haigh and Energy Secretary Michael Shanks would result in the mandate being weakened or more incentives introduced.
Auto giants BMW, Volkswagen, Ford, Stellantis and Toyota attended the meeting, as well as industry associations and charging infrastructure companies.
Announcing job cuts yesterday, Ford Chief Financial Officer John Lawler said the company “lacks an unmistakable, clear policy agenda to advance e-mobility” in Europe.
The company’s factories in Dagenham and Halewood and its logistics base in Southampton will not be affected by the redundancies, the company said. Most risk positions are administrative or product development positions.
Dave Johnston, Ford’s European head of Transformation and Partnerships, said: “It is critical to take tough but decisive action to secure Ford’s future competitiveness in Europe.”
Together with Volkswagen and Stellantis, the company has unveiled major cost-cutting proposals linked to weaker demand for electric vehicles.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, said: “Today’s call with ministers was an important opportunity to reiterate the UK car industry’s commitment to both economic growth and Net Zero.
‘However, the industry has also clearly expressed concerns about the pace of the EV transition and the negative impact this is having on the health of the overall market and the attractiveness of Britain as a manufacturing location.’
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow a commercial relationship to compromise our editorial independence.