Nissan is calling for "urgent action" to revise electric vehicle (EV) regulations under the UK's Zero Emissions Vehicles Mandate which might otherwise put its UK operations at risk.
Employing about 6,000 workers at its Sunderland facility and supporting even more jobs in the supply chain, the motor manufacturer has joined other carmakers in Government discussions regarding the mandate. Implemented from January 1, the policy dictates that 22% of each manufacturer’s new car sales in the UK this year must be zero-emission, typically pure electric vehicles, with the requirement escalating to 80% by 2030.
Although dedicated to producing EVs, Nissan believes the current framework of the mandate is now "outdated", cautioning that it could jeopardise the viability of car production in the UK, as well as the security of thousands of jobs and billions in investments.
The concerns have come a fortnight after Nissan said it would cut 9,000 jobs worldwide due to severe sales declines, though any impact on its North East workforce remains unconfirmed. Ford, another automotive giant, also announced significant layoffs yesterday.
During a recent meeting, top figures from the Government engaged with automotive sector leaders to reflect on EV sales quotas. From the Government’s side, there was an acknowledgment of "the global challenges the industry has been facing", reports Chronicle Live.
The Government's statement shies away from promising any changes to the Zero Emissions Vehicles Mandate but suggests an openness to revising regulations to align with the growth of the UK economy and support a seamless transition to electric vehicles.
Nissan's Guillaume Cartier, chairperson for the AMIEO region, said: “Nissan has consistently supported the aims of the UK’s ZEV Mandate and have been working with Governments and partners towards a fully electric future since the first Nissan LEAF arrived in 2010.
“The Mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment. 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.”
Despite manufacturers offering discounts in attempts to stimulate sales, the Society of Motor Manufacturers and Traders anticipates a slump in consumer demand, predicting EV sales will constitute only 18.5% of the total market this year. Non-compliance with the ZEV rule or not taking advantage of potential flexibilities could lead to producers facing fines, paying the Government £15,000 for each excess polluting vehicle sold.
Nissan has warned that failing to meet the target would necessitate buying credits from EV-only manufacturers, which are not UK-based, effectively causing the British automotive industry to subsidise EV sectors abroad. The company is advocating for increased flexibility in credit borrowing from future years and a two-year monitoring period for 2024 and 2025, as opposed to immediate fines.
Mr Cartier added: "We are committed to working with Government and industry partners on a long-term solution, but action is needed urgently to ensure we protect UK car manufacturing and ensure we can all realise and support the transition to zero emissions and carbon neutrality."
The recent meeting on the issue brought together Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds, with representatives from the automotive sector including Ford, Volkswagen Group, Stellantis, BMW, Toyota, the Society of Motor Manufacturers and Traders (SMMT), and Nissan.
A Government spokesperson said: "Ministers from across Government have met with automotive sector and industry representatives to discuss the transition to electric vehicles, and how the Government can support continued growth of the sector. Recognising the global challenges the industry has been facing, ministers underlined the Government's commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030."
"The UK automotive sector now has the fastest growth of zero-emission vehicles of any major European market, and we're providing more than £2.3bn to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day."
