Car giants warn Labour about massive UK job cuts over strict EV rules

British auto industry prepares to meet with Labour ministers about tough electric-vehicle sales requirements. Car makers say thousands of jobs are at risk if current quotas stay in-place

November 18 2024 , 01:14 PM  •  834 views

Car giants warn Labour about massive UK job cuts over strict EV rules

UK car makers are getting ready for a high-stakes meet-up with Labour ministers this wednesday to talk about electric-vehicle rules that might hurt the industry

The current rules say car makers need to sell 22% electric cars or pay big fines (£15000 per car)‚ and its going up to 28% next year. Van makers face similar rules with targets jumping from 10% to 16%

Louise Haigh and Jonathan Reynolds‚ Labours transport and business chiefs will hear from worried auto-makers about how these rules dont match what buyers want. The industry says the governments plan to reach 80% electric sales by 2030 is too fast

One big worry is Carlos Tavaresʼs Stellantis group‚ which owns Vauxhall; theyʼre thinking about what to do with factories in Ellesmere Port and Luton that employ 2‚500 people. The company needs to decide by years end — theyre hitting 20% EV sales now but say thats twice what customers actually want

Sharon Graham from Unite says:

We are talking with government about changing rules to save jobs; the switch to electric cars wont work by threatening workers

Unite general secretary

The Sunderland Nissan plant (which keeps 6000 people working and helps another 30000 jobs in related businesses) is also pushing for softer rules. The Society of Motor Manufacturers & Traders warns that hitting companies with fines could lead to:

  • Less investment
  • Fewer research projects
  • Job cuts
  • Less money for new tech

The government might change these rules‚ but theyd need parliaments ok first. Right now only one-in-six new cars sold are electric‚ and charging spots are still hard to find