The government will reverse these laws. After industry pressure, automakers called for battery-powered cars.
But the move came too late to save Vauxhallvan plant at Luton, where 1,100 jobs are at risk.
Ministers have agreed to revise the rules. Which means that at least 22% of cars built in British factories must be battery-powered. Breaking the rules means either buying credits from competitors who are beating those targets or paying a fine of £15,000 per car.
After warnings from car owners that low consumer demand would make it impossible to meet targets, leading to factory closures or job cuts, ministers will advise carmakers to consider the upcoming Give yourself more time to hit your goals by building more electric cars over the years. .
The news comes as the owner of Vauxhall The brand said it plans to close its Luton factory, which makes the Vauxhall Vivaro van. The plant was to be overhauled next year to make the electric model.
But the brand’s owner, car giant Stellenbosch, also warned that the site was at risk if more was not done to encourage the public to buy. Electric vehiclesand after a tough year he’s decided to pull the plug.
After Russia’s invasion of Ukraine, automakers are struggling with high energy prices and are passing the cost on to their customers. They did this very successfully in the wake of the pandemic when factory closures meant a shortage of cars.
But now, as factories crank out more vehicles, they’re meeting consumers who are realizing higher energy bills and mortgage payments. Efforts to sell more electric cars have also stalled. EVs cost more to build because of the expensive materials needed to make the larger batteries.
Stretched customers are choosing them at a slower rate, meaning automakers have had to cut their prices, eating into margins.
Danny Hewson, head of financial analysis at stockbroker AJ Bell, said: “The decision not to proceed with further investment at the Luton plant will be a blow and is a sign that the carmaker feels backed into a corner. are
“The big question will be how to persuade reluctant motorists to make the shift. Lower prices are clearly an option and it’s already affecting automakers’ profits.
“But for some drivers it doesn’t make sense to make the switch because they don’t have charging options at home or feel the existing charging infrastructure where they drive isn’t up to scratch.”
Luton is one of the two largest plants in Britain of Stellencys. The other is in Ellesmere Port. This other site specializes in small vans such as the Vauxhall Combo when it stops making the Astra car in 2021. The vans will now only be made at the Ellesmere Port site, where Stillentis hopes to relocate many Luton jobs.
The plant exports its vehicles across Europe under the Opel brand, as well as making vehicles under the Citroen and Peugeot brands, which are owned by Stellantis.
Last month, Stellantis said sales fell 27 percent, or 12 billion euros, in the three months to the end of September from a year earlier.
The company is the product of the merger of several major brands, including Citroen, Peugeot, Chrysler and Fiat.
It competes with other giants like Volkswagen and Toyota.
A government spokesman said: “We have a long-standing partnership with Stellentis and will continue to work closely with them, as well as trade unions and local partners, on the next stages of their proposals.
“The Government is also supporting the wider industry with more than £300m to develop zero-emission vehicles and £2bn in the transition to domestic manufacturing.”