BMW announced this month a 600 million pound investment in its Mini plant in Oxford. The goal was to update the factory in preparation for a global electric future, changing the lines over to accommodate two new electric models, the Mini Cooper 3-door EV and the new Mini Aceman electric SUV. Likewise Ford, Stellantis, and Tata Group have spent significant money on revamping and refitting factories for EV production. Much of this was in response to the UK’s 2020 announcement that it would commit to de-carboning new vehicle sales in the country by the end of the decade.
The UK’s 2030 internal combustion new car sales ban was the most ambitious of those announced by major world powers. The country had set strong net-zero commitments, and this plan would have gone a long way toward meeting these goals. Last week Prime Minister Rishi Sunak announced that the plan was too ambitious and he would be walking it back, allowing gasoline and diesel vehicles to remain on sale in the country until 2035.
Earlier today Nissan’s president and chief executive, Makoto Uchida, said “There’s no going back. The world needs to move on from internal combustion engines.” The Nissan Qashqai is the best selling vehicle in the United Kingdom, and the company has vowed to “press ahead” with its plan to sell only electric vehicles in Europe by 2030, despite Sunak’s efforts. Nissan does not believe the UK’s U-turn will significantly alter consumer behavior.
Ford, for its part, wasn’t so confident. “Our business needs three things from the UK government: ambition, commitment, and consistency. A relaxation of 2030 would undermine all three,” Ford UK chair Lisa Brankin said in a statement. “We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”
BMW and Stellantis echoed the call for clarity. Consumers must actively want to make the switch, and this latest policy swap could set the UK’s EV adoption back, and potentially harm the country economically. The auto industry employs 780,000 people in the UK, and accounts for 10% of the country’s exports.
Sunak’s political walkback is receiving criticism from others in the government, including those within his own party. Former business and energy minister Alok Sharma said the plan “will not help economically or electorally”, while conservative lawmaker Simon Clarke said that the move would “shatter” UK citizens’ consensus on tackling the climate crisis.
“We need sensible green leadership,” Sunak said “We’re stuck between two extremes: those who want to abandon net zero altogether … [and] others who argue with an ideological zeal we must move even faster.” As with most things politick, there’s no pleasing everyone, so it’s probably best to err on the side of the planet.