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From today’s Telegraph – quoting the Sunday Times. (Many of us have been saying for some time that it is inevitable that the 2030/35 dates would have to change – maybe this change will be coming even sooner than we thought)
EU car industry successfully lobbies to push back all-electric targets amid mounting backlash.
Labour has been urged to delay a ban on petrol and diesel cars as Brussels reportedly prepares to push back its own deadline by five years.
Ministers have been warned that sticking with the current 2030 ban on the sale of new internal combustion engine vehicles would be disastrous were the EU to extend its deadline to go all-electric to 2040.
The Sunday Times reported that carmakers have had confirmation that the Brussels ban will be pushed back from its current date of 2035, citing Tim Tozer, UK chairman of insurer and roadside assistance firm Allianz Partners, and unnamed executives.
Andy Palmer, the former chief executive of Aston Martin, told the Telegraph a shift in the EU ban to 2040 was “seemingly inevitable” given the strength of lobbying.
Ursula von der Leyen, the president of the European Commission, has faced pressure from Friedrich Merz, the German Chancellor, and leaders of other countries with large car industries to ease off on the clampdown.
A delay would allow petrol cars to be sold across the EU for 10 years longer than in the UK, creating headaches for manufacturers.
While British plants export three-quarters of their cars, with Europe the biggest market, manufacturers will still be bound to Britain’s strict electric vehicle (EV) targets, suggesting they will have to run twin manufacturing lines to meet demand both at home and abroad.
The US, the second-largest market for British-made vehicles, is also reversing policies that encouraged the switch to electric vehicles.
Brian Gregory, policy director at the Alliance of British Drivers, said an EU rethink could render Labour’s stance on banning sales by the end of the decade fatal for UK production.
He said: “This makes the Government’s stance untenable. We would be destroying our automotive industry and the whole supply chain to no good purpose.
“The UK should step back from the abyss and continue supporting its manufacturers, because if we don’t, we’ll have no car industry left.”
A global survey released by think tank Chatham House on Monday showed that British drivers were among the most reluctant in Europe to buy an EV.
One-third of UK respondents said they were “not interested at all” in EVs, a higher proportion than in the Netherlands, Italy, Portugal, Spain and Sweden.
Mr Gregory said Labour’s approach of “strong-arming manufacturers into stopping sales of vehicles people clearly want to buy” would also hand control of the UK industry to China, which has a stranglehold on key metallic elements used in battery-electric cars.
He said: “The only people benefiting are the Chinese, who have a monopoly over the rare earths and alkali metals required to produce electric vehicles. If they suddenly decided to turn the tap off, we’d be stuffed. Much better to have a pluralist approach.”
Andrew Griffith, the shadow business secretary, said the Government should accept that net zero targets for the car industry were unworkable.
He said: “For the UK to be a decade ahead of the EU in its eco-zealotry and denial of consumer choice would be complete madness.
“It would be hugely damaging to our own automotive industry. The quicker that Labour rein in Ed Miliband and perform a U-turn on their 2030 engine ban, the better.”
However, Mr Palmer, who is now chairman of battery-technology company Ionetic, said the move would be “a huge mistake” for which European car makers “will pay dearly”.
He said: “You cannot put that genie back in the bottle. Insulating markets either by legislation or tariffs means that, through the laws of Darwinism, the Western manufacturers will not be the fittest and may not survive. China is already technologically years ahead.”
Mr Palmer suggested that Britain should instead seek to woo Chinese investment into the UK. While such a strategy would be a “brave pill”, it would replicate Margaret Thatcher’s embrace of Japanese carmakers while prime minister in the 1980s.
If Britain defers, he warned, countries such as Hungary and Spain will benefit from Chinese investment instead.
Chatham House’s survey showed that 34pc of Britons who would buy an EV would consider a Chinese-made one. This was higher than in most other European countries surveyed except Portugal, Italy and Spain.
Boris Johnson originally announced plans to outlaw the sale of new petrol and diesel cars by 2030, only for the deadline to be pushed back to 2035 under Rishi Sunak.
On gaining power, Labour moved the target date back to 2030. It is enforced by requiring manufacturers to ensure a certain proportion of sales are EVs, with the level rising annually until the end of the decade. Manufacturers claim the sales targets are too high, with most drivers unenthusiastic about going electric.
Ministers have already watered down the mandate on zero-emission vehicle sales following outreach from industry, allowing the sale of hybrid cars that run on both petrol and battery power to 2035.
In the US, President Donald Trump is reversing pro-EV policies brought in by Joe Biden that he claims have driven up costs and prices while making cars “much worse”.
A UK Government spokesman said: “We remain committed to phasing out all new non-zero emission car and van sales by 2035. More drivers than ever are choosing electric, and November saw another month of increased sales with EVs accounting for one in four cars sold.
“We’re investing over £7.5 billion to support drivers and manufacturers make the switch to zero emission. This includes £4 billion investment to back British manufacturing and R&D, create jobs, and drive growth in the sector.”
“Our Electric Car Grant is making it cheaper than ever to choose an EV, with over 40,000 drivers saving up to £3,750 since launch, backed by an extra £1.3 billion announced at the Autumn Budget.”
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