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Britain announced on Wednesday that it would review the rules requiring carmakers to produce more electric vehicles after the industry warned that the current plan could lead to factory closures and job losses due to weak consumer demand.
As part of its net zero goals, the previous Conservative government introduced Zero Emission Vehicle (ZEV) mandates, which require carmakers to sell a larger percentage of electric vehicles each year or face fines. These rules started earlier this year.
However, demand for electric vehicles has not kept pace, and carmakers have warned that, without government action, jobs and Britain’s position as a manufacturing hub are at risk.
Finance Minister Rachel Reeves said the government has started a consultation to review the plans set by the previous government.
“It’s really important to get the balance right and provide proper support for the car industry in Britain,” she told reporters. “We want people to buy electric vehicles, but we also want to protect jobs and keep investment in Britain. We’re determined to do that through this consultation.”
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As part of its net zero goals, the previous Conservative government introduced Zero Emission Vehicle (ZEV) mandates, which require carmakers to sell a larger percentage of electric vehicles each year or face fines. These rules started earlier this year.
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Britain announced on Wednesday that it would review the rules requiring carmakers to produce more electric vehicles after the industry warned that the current plan could lead to factory closures and job losses due to weak consumer demand.As part of its net zero goals, the previous Conservative government introduced Zero Emission Vehicle (ZEV) mandates, which require carmakers to sell a larger percentage of electric vehicles each year or face fines. These rules started earlier this year.However, demand for electric vehicles has not kept pace, and carmakers have warned that, without government action, jobs and Britain’s position as a manufacturing hub are at risk.Finance Minister Rachel Reeves said the government has started a consultation to review the plans set by the previous government.
“It’s really important to get the balance right and provide proper support for the car industry in Britain,” she told reporters. “We want people to buy electric vehicles, but we also want to protect jobs and keep investment in Britain. We’re determined to do that through this consultation.”