Ford's UK Boss Demands Taxpayer Incentives to Drive Electric Vehicle Future

By Evans Momodu
6 minutes read


Ford’s UK Chair Lisa Brankin has urged the government to introduce direct consumer incentives of up to £5,000 per electric vehicle (EV) to boost demand and help the automotive industry meet ambitious net-zero goals.

Speaking at the Halewood plant during the launch of the Puma Gen-E, Ford's most affordable EV to date, Brankin highlighted a growing disparity between government targets and consumer adoption rates.

Challenges Facing the EV Transition

• Demand Shortfall: Brankin noted that the current pace of consumer EV adoption lags behind the expectations set when the government introduced the Zero Emission Vehicle (ZEV) Mandate. This policy requires 22% of new car sales and 10% of vans in 2024 to be electric.
• Penalties for Non-compliance: Automakers face a £15,000 fine for each vehicle sold below the ZEV target, a figure Brankin and other manufacturers have described as punitive.
• Cost Barriers: The price of EVs, even at entry-level models like the £30,000 Puma Gen-E, remains prohibitive for many customers despite Ford’s investment of £380 million in Halewood and £2 billion in Cologne.

Industry Proposals

Ford, along with other manufacturers, has called for:

1. Consumer Incentives: A subsidy or scrappage scheme offering significant financial support to buyers.
2. VAT Cuts: A reduction in value-added tax for EVs to make them more affordable.
3. Policy Revisions: Adjustments to the ZEV Mandate targets to reflect the current market realities and consumer behaviour.

Brankin also pointed out that government support for Ford’s UK operations, including Dagenham and Halewood, has been modest compared to the company’s own investments. For Ford and other manufacturers to sustain their operations and protect jobs, a profitable EV transition is crucial.

Broader Industry Concerns

The European automotive sector is grappling with additional pressures, including:

• Competition from Chinese Automakers: Cheaper EV imports are putting pressure on local producers.
• Softening Consumer Demand: Economic uncertainty and high EV costs are slowing sales.
• Tariff Risks: The potential reinstatement of tariffs, particularly under a second Trump administration, could further strain the industry.

The success of vehicles like the Puma Gen-E, coupled with government incentives, is pivotal in bridging the gap between policy aspirations and market reality.

Without significant consumer support mechanisms, the UK risks falling behind in the global EV race, thereby jeopardising both climate targets and the automotive sector's competitiveness.
Source: Sky news