The calls come as Stellantis announce that the Vauxhall factory in Luton will close in April 2025 (Image: Getty)
A growing number of automotive industry experts are putting pressure on the Government to ease plans over the transition to after announced that .
The decision to close the factory, which has produced vehicles since 1905, will put up to 1,100 jobs at risk, with many blaming increasingly restrictive measures to incentivise the over petrol and diesel alternatives.
Mike Hawes, Chief Executive of the (SMMT), highlighted that the move shows current Government policy surrounding is not working.
He warned: “We need an urgent review of the automotive market and the regulation intended to drive it. Not because we want to water down any commitments, but because delivery matters more than notional targets.
“The industry is hurting; profitability and viability are in jeopardy and jobs are on the line. When the world changes, so must we. Workable regulation – backed with incentives – will set us up for success and green growth over the next decade.”
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SMMT figures suggest that vehicle brands could face a £1.8 million fine for not meeting EV targets (Image: Getty)
Vehicle manufacturers who sell models in the UK are subject to a quota, established at the start of 2024 by the previous Conservative Government, which currently states that 22 percent of cars sold must be electric, with the amount rising each year until the proposed ban on new petrol and diesel models in 2030.
Car companies that fail to meet the target are subject to a charge of £15,000 per electric model they failed to sell, with the SMMT estimating that brands have collectively spent £4 billion discounting EVs in a bid to increase demand.
Nevertheless, the organisation still predict that many companies will not meet the quota’s high ambitions, with current sales figures suggesting that the number of new electric cars sold currently stands at 18.7 percent – 94,000 examples short of the target.
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Ford recently announced that it would be cutting 4,000 jobs across Europe before 2027 (Image: Getty)
With the SMMT predicting that manufacturers will receive a total fine of £1.8 billion due to the Government’s quota, a number of popular companies have announced money-saving measures.
Stellantis claim that the expected closure of the Luton factory in April 2025, which was due to start production of all-electric models from Vauxhall, Fiat, Citroen, and Peugeot, has been announced in order to boost efficiency. Products made at the factory, along with some jobs, will be moved to the Ellesmere Port plant.
Less than a week prior, Ford also announced 4,000 job cuts in Europe by the end of 2027 due to a slump in EV sales, with Germany and the UK said to be the hardest hit.
Nevertheless, some motoring experts have urged the Government to maintain current policies surrounding EVs. Fiona Howarth, CEO of Octopus Electric Vehicles, noted that changes could be even more damaging, but still called for more support for manufacturers.
She added: “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.”