LONDON (Reuters) – The United Kingdom began a consultation on Tuesday (24) to review the rules that force automakers to produce more electric vehicles, following warnings from the industry that the current plan could lead to the closure of factories and the loss of jobs.
The consultation will gather industry views on changing the so-called Zero Emission Vehicles (VZE) mandate, which requires carmakers to sell a greater proportion of VZE each year or face fines.
Carmakers say lower-than-expected demand for electric vehicles has forced them to spend billions of pounds on discounts to attract customers and meet sales targets.
Last month, Vauxhall owner Stellantis said it would close a van factory in southern England, putting more than 1,000 jobs at risk, partly reflecting the impact of VZE.
The country’s Labor government said it would consult to update targets without compromising the overall direction of regulations, which form part of its climate goals.
