The UK government is giving carmakers eight weeks to submit proposals on the launch of new petrol and diesel cars, as ministers consider reducing the prices that electric carmakers are struggling to beat.
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(Bloomberg) — The U.K. government is giving carmakers eight weeks to submit proposals on the rollout of new gasoline and diesel vehicles, as ministers consider reducing sales prices for electric carmakers that are struggling to beat them.
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The Department of Transport has committed to phasing out self-driving cars by 2030, but is now asking the industry whether its plan to meet that target is working. The consultation will ask whether the “reforms” baked into the current system are effective enough to support producers.
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The talks come amid strong industry criticism of the government’s quotas for selling zero-emission cars – introduced by Conservative Prime Minister Rishi Sunak’s administration – which include penalties for failing manufacturers. The Secretary of Labor and Trade, Jonathan Reynolds, said last month that the tariffs, which require 22% of new cars and 10% of new vans sold by each manufacturer this year to not produce zero, are not working as planned.
Despite heavy discounting, manufacturers are struggling to meet targets – electric cars accounted for 18.7% of the UK car market between January and November. According to a study by the Energy and Climate Intelligence Unit, the industry will meet the target this year only because the mandate to sell EVs takes into account the credits received from selling hybrid vehicles.
Vauxhall owner Stellantis NV last month blamed EV regulations for its plan to close a van factory in Luton, putting about 1,100 jobs at risk, while Ford Motor Co. as hope.
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Mike Hawes, chief executive of trade group the Society of Motor Manufacturers and Traders, has criticized the government’s “build it and they will come” approach to the EV transition. “The truth is we’re building them, but they’re not coming in enough numbers to buy,” Hawes said last month.
The Ministry of Transport said that the negotiations will not postpone the 2030 goal of stopping the sale of petrol and diesel cars, but will look at other ways to support the industry and consider which hybrid cars can be sold without zero emission models between 2030 and 2035. .
“Over the past few years, our auto industry has been plagued by uncertainty and direction,” Transportation Secretary Heidi Alexander said in a statement. “This government will change that.” The consultation closes on February 18.
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