Ford wants UK help as electric car sales slump

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Ford Motor Co. is pressuring the UK government to implement consumer incentives for electric vehicles (EVs) amid growing industry resistance to sales targets and declining consumer interest.

Ford UK’s chair and managing director, Lisa Brankin, emphasized to the BBC that government-mandated EV production targets are ineffective without measures to stimulate consumer demand.

This is rather freshingly honest from the boss of Ford UK. Ford supports the government trajectory and ambition over EVs, but 'there isn't the customer demand'. pic.twitter.com/YpNGXzy5hg

— Hilton Holloway (@hiltonholloway) November 27, 2024

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This development intensifies the existing friction between automotive manufacturers and government officials regarding the planned phase-out of petrol and diesel vehicles, particularly as market demand continues to decrease.

Recent industry upheaval includes Stellantis’s announcement to shutter its Luton facility, threatening 1,100 positions, partially due to EV requirements.

“A dark day for Luton,” declared Business Secretary Jonathan Reynolds in the House of Commons regarding Stellantis’s announcement.

Ford’s workforce reduction mirrors this trend, with plans to eliminate 800 UK positions over three years, citing EV mandates and heightened competition from Chinese manufacturers flooding the market with affordable electric alternatives.

“The one thing that we really need is government-backed incentives to urgently boost the uptake of electric vehicles,” Brankin stated on BBC Radio 4’s Today programme.

She highlighted Ford’s substantial investment in EV development, exceeding £350m in UK electrification efforts, emphasizing the necessity for success.

With the news that Ford are planning to move production out of the UK in the event of no deal, here’s a reminder of how Digby Jones thought “the boss of Ford” would react. pic.twitter.com/8dwsFbsP2l

— Islander (@PropertySpot) February 13, 2019

Current regulations mandate that zero-emission vehicles comprise 22% of company car sales and 10% of van sales this year, with non-compliance resulting in £15,000 fines per vehicle.

These requirements will increase to 28% for cars and 16% for vans by 2025, with progressive annual increases leading to a complete prohibition on new petrol and diesel vehicle sales by 2030.