Wednesday, November 27, 2024
Electric VehiclesLatestNews

Government urges “pragmatism” on ZEV Mandate

Business secretary Jonathan Reynolds said he was “bitterly disappointed” by Stellantis’ decision to close its Luton plant, but that he wanted the government to be “pragmatic” on the ZEV Mandate as he officially launched a consultation.

Speaking in the House of Commons, Reynolds formally announced the government’s plans for a consultation on bring forward the end date for new ICE sales to 2030. As part of the consultation, there would be the ability for “flexibility” on the ZEV Mandate.

Reynolds also said that “contrived culture wars” was not “what this industry needs” and instead it “needs a partner in government ready to look at practical solutions necessary”.

He spoke about “wider challenges in the sector” and also referenced Ford’s plans to scale back its operations across Europe. Issues in the car manufacturing sector are “global in nature”, he said, and cannot be helped by the UK Government alone.

Reynolds said Stellantis’ investment at Ellesmere Port showed there were “real opportunities” for the transition to zero emission vehicles (ZEV). But he stressed that the transition needed to be “properly managed”.

He said: “The government is determined to support automotive companies as they revamp their production lines, adjust their business plans and develop the technology needed for the next generation of ZEVs.”

“These cars and vans are cleaner and greener, and essential to our net zero ambitions. Roughly 30% of greenhouse gas emissions come from cars, vans and lorries to tackle this and to wean our country off imported fossil fuels we need cleaner vehicles.”

He continued that the government was “resolute” on the transition, but it had to be done “in partnership” with government, industry and consumers, arguing for “pragmatism”.

Reynolds mentioned the roundtable with the transport and energy sectors last week on the ZEV Mandate, and said the “fast-track consultation” was a result of those conversations.

He said: “We will use the consultation to engage with industry on the previous government’s ZEV transition mandate and the flexibilities contained within it. And we will welcome onboard their feedback as we move forwards.

“We want to do everything we can together with industry to secure further investment into the British automotive sector now and over the long term. It is why in the Budget the chancellor committed £2bn in R&D and capital funding to support the ZEV manufacturing sector and supply chain.”

Speaking specifically on the closure of the Luton plant by Stellantis, he described it as “a bitter blow to our car industry”, but “we must not lose sight of the fact that these vehicles will continue to be designed and built in the UK at Ellesmere Port”.

“When I say decarbonisation must not mean deindustrialisation, I mean it. Winning the race to net zero and having a world-leading automotive sector must go hand-in-hand,” he added.

Image from Shutterstock

Sign up for our essential
newsletter service.

Enter your details here.