Nissan has called for urgent action to protect jobs as they could face Government penalties after sales of electric vehicles slipped.
Under the zero-emission vehicles (Zev) mandate introduced on January 1, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission – generally pure electric - with the threshold set to rise annually up to 80% by 2030 under current rules,
Failing to reach the target could see manufacturers forced to pay the Government £15,000 per polluting car sold above the limits.
It is predicted Zev sales will only hit 18.5% this year, 3.5%pnts below the target.
Manufacturers can buy credits from rivals or offset the figures against future years’ sales to avoid fines, but there are fears the Zev mandate is putting jobs at risk at UK vehicle factories.
And the target will rise to 28% in 2025, with Government saying a ban on the sales of petrol and diesel cars could be brought forward to 2030 from 2035.
Nissan this week called for urgent action from Government to avoid penalties for the slowdown of sales, saying the targets are “outdated” amid a “slowdown in consumer demand”.
“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,” Guillaume Cartier from Nissan said.
“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.”
The company, which employs 7,000 people in the UK, has called for increased flexibility when it comes to borrowing credits from future years, and an initial two-year monitoring period to avoid fines.
Nissan said earlier this month it would cut 9,000 jobs globally while throttling back production by 20 per cent amid sweeping cost-saving measures.
Last year it confirmed electric versions of the Juke and Qashqai would be made in Sunderland.
It comes as bosses from the Japanese car-builder based in Washington, Wearside met with Transport Secretary Louise Haigh, Business Secretary Jonathan Reynold, and chiefs from rivals including Ford, VW, BMW, and Toyota on Wednesday (November 20).
A spokesperson for the Government said it recognises “the global challenges the industry has been facing”.
The meeting came hours after Ford said it would cut 800 roles across the UK over the next three years as part of a wider European jobs cull amid pressure from “lower-than-expected demand” for its electric cars.
A Government spokesperson added: “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.
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“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 £2.3 billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.”
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