{"id":14566,"date":"2023-09-20T19:13:22","date_gmt":"2023-09-20T19:13:22","guid":{"rendered":"https:\/\/prosfunds.com\/business\/the-uk-is-delaying-the-switch-to-electric-cars-automakers-are-furious\/"},"modified":"2023-09-20T19:13:22","modified_gmt":"2023-09-20T19:13:22","slug":"the-uk-is-delaying-the-switch-to-electric-cars-automakers-are-furious","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=14566","title":{"rendered":"The UK is delaying the switch to electric cars. Automakers are furious"},"content":{"rendered":"
\n

\n The UK government said Wednesday it would delay a ban on the sale of new gas and diesel cars by five years, angering carmakers who warned the move would undermine the industry\u2019s efforts to switch to electric vehicles.\n <\/p>\n

\n The delay was announced by Prime Minister Rishi Sunak as he watered down some of the government\u2019s green energy policies, despite fierce opposition from climate campaigners, members of his own party and business.\n <\/p>\n

\n \u201cWe seem to have defaulted to an approach that will impose unacceptable costs on hard-pressed British families,\u201d Sunak said. <\/strong>If the government stuck to its current climate policies <\/strong>\u201cwe risk losing the consent of the British people.\u201d\n <\/p>\n

\n Sunak said people would be able to buy new gasoline and diesel cars until 2035, instead of 2030, aligning the UK with countries such as Germany, France, Spain, Italy, Canada and Sweden.\n <\/p>\n

\n \u201cWe are going to ease the transition to electric vehicles,\u201d he said. \u201cWe will still meet our international commitments and hit net zero by 2050.\u201d\n <\/p>\n

\n The UK <\/strong>announced the 2030 ban in 2020, putting it on course to become the first major economy to decarbonize road transport \u2014 an essential step towards meeting its net zero commitments.\n <\/p>\n

\n Sunak\u2019s plans had been widely reported and automakers criticized the expected policy shift earlier Wednesday. They have committed billions to electrify their fleets ahead of the deadline and were hopeful that the 2030 target would boost demand for electric vehicles.\n <\/p>\n

\n \u201cOur business needs three things from the UK government: ambition, commitment, and consistency. A relaxation of 2030 would undermine all three,\u201d Ford (F) UK chair Lisa Brankin said in a statement.\n <\/p>\n

\n \u201cWe need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high,\u201d Brankin added.\n <\/p>\n

\n Just last week, BMW announced a \u00a3600 million ($743 million) government-backed investment to build electric Minis at its Oxford and Swindon factories in the UK. The Mini brand is set to become purely electric from 2030 globally.\n <\/p>\n

\n \u201cWe and the whole automotive industry [need] clarity on the [EV] topic,\u201d the German carmaker said in a statement shared with CNN.\n <\/p>\n

\n Stellantis (STLA), which owns the Fiat, Peugeot and Citro\u00ebn brands, echoed the call for clarity and said it was committed to achieving 100% zero emission new car and van sales in the UK by the end of the decade.\n <\/p>\n

\n Earlier this month, the company \u2014 formed from the merger between Fiat Chrysler and France\u2019s PSA Group \u2014 marked the start of electric vehicle production at its Ellesmere Port facility outside Liverpool. It invested <\/strong>\u00a3100 million ($124 million) to transform the plant for EV production.\n <\/p>\n

\n The UK auto industry has been clawing its way back from rock bottom after car manufacturing hit a 66-year low in 2022. The industry had also fallen behind in the race to develop EVs due to a dearth of local battery production.\n <\/p>\n

\n It received a shot in the arm in July when India\u2019s Tata Group said it would invest more than \u00a34 billion ($4.9 billion) to build a UK gigafactory set to provide almost half of the batteries the UK will need by 2030.\n <\/p>\n

\n The latest policy change could set back that progress and ultimately harm the economy if it jeopardizes the future of the UK\u2019s auto manufacturing sector.\n <\/p>\n

\n If Britain is to be a leader in phasing out polluting vehicles, \u201cconsumers must want to make the switch, which requires from government a clear, consistent message, attractive incentives and charging infrastructure that gives confidence rather than anxiety,\u201d said Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, an industry body.\n <\/p>\n

\n \u201cConfusion and uncertainty will only hold them back,\u201d he added. Reducing emissions from road transport \u201cis the only way that you will achieve net zero,\u201d Hawes told the BBC.\n <\/p>\n

\n The government\u2019s own independent adviser on climate policy, the Climate Change Committee shares that view. In a 2020 report, the committee said that the \u201cfull transition\u201d to EVs will be \u201cone of the most important actions to achieve the UK\u2019s net zero target.\u201d\n <\/p>\n

\n In diluting the government\u2019s climate policies, Sunak was likely bolstered by the outcome of a recent election in which his Conservative Party managed to retain a London seat it was widely expected to lose after voters rebelled against the city\u2019s Ultra Low Emission Zone.\n <\/p>\n

\n The ULEZ, which charges drivers \u00a312.50 ($15.50) <\/strong>every day they use a car that doesn\u2019t meet tough emissions standards, has been expanded by the opposition Labour Party\u2019s London Mayor Sadiq Khan.\n <\/p>\n

\n \u201cWe need sensible green leadership,\u201d Sunak said \u201cWe\u2019re stuck between two extremes: those who want to abandon net zero altogether \u2026 [and] others who argue with an ideological zeal we must move even faster.\u201d\n <\/p>\n

\n But he faces criticism from within his own party. Pulling back on the climate agenda \u201cwill not help economically or electorally,\u201d former business and energy minister Alok Sharma, who was president of the COP26 climate conference in Glasgow, said on X, the platform formerly known as Twitter.\n <\/p>\n

\n Simon Clarke, another Conservative lawmaker, said on X that the move will \u201cshatter\u201d the UK\u2019s consensus on tackling the climate crisis.\n <\/p>\n

\n It could also hurt an industry that employs 780,000 people and accounts for 10% of UK exports. Most industry executives agree that a shift to electric cars is inevitable. And that shift is already gathering momentum in Britain.\n <\/p>\n

\n EVs are expected to account for nearly 18% of new car registrations by the end of the year, up from just 0.7% in 2018, according to the SMMT.\n <\/p>\n

\n If policy missteps or waning government support cause the UK to become an unattractive place to manufacture EVs, that could threaten the future of Britain\u2019s auto sector.\n <\/p>\n

\n \u2014 Gemma Blundell-Doyle, Anna Cooban, Laura Paddison and Rob Picheta contributed reporting.<\/em>\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK government said Wednesday it would delay a ban on the sale of new gas and diesel cars by five years, angering carmakers who warned the move would undermine the industry\u2019s efforts to switch to electric vehicles. The delay was announced by Prime Minister Rishi Sunak as he watered down some of the government\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":14567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-14566","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nThe UK is delaying the switch to electric cars. 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