The UK car industry is in danger of being wiped out if the government doesn’t step up its support for the transition to electric vehicles, an industry leader has warned.
Former Nissan chief Andy Palmer has predicted that automakers will “probably” leave the UK without a huge subsidy package comparable to billions in aid from the US and EU.
He said that without subsidies, the UK is “managing the downturn in the industry” but it has a “last chance” to develop the sector. “It’s not only possible, it’s probable” that British automakers could go, he told T.Today Program.
“You are at a time when you are either competing … or dealing with the decline of British industry to near zero,” he said.
“We have one last roll of the dice to bring back some of this industry; If we don’t, we will have to look for other jobs for 820,000 people.”
Dubbed the “Godfather of Electric Vehicle” for his role in developing the Nissan Leaf, the world’s first mass-produced electric vehicle, Mr. Palmer is currently Chairman of the Board of Electric Battery Manufacturer InoBat.
He spoke after Chancellor Jeremy Hunt said the UK would not “keep pace in a devastating global subsidy race” with the US or the EU in providing huge grants.
The chancellor had previously told MPs on a Treasury select committee that he welcomed the $369 billion deal.
He said the Americans were “catching up” but acknowledged that the plan could pose a threat to green investment in the UK. “It comes with risks and we need to minimize those risks,” he said. “This does not necessarily mean that the grant matches the grant, but it does mean that the overall package that makes people decide to invest in the UK remains attractive.”
Mike Howes of the Society of Motor Manufacturers and Traders said: “The market for new cars and vans in the UK is already moving towards electrification at a rapid pace.
“If the UK is to lead the global race for zero-emission mobility, it must go further and faster to unlock infrastructure investment, encourage electric vehicle ownership and ensure that more of these vehicles are designed and built in the UK.”
He warned that continued “uncertainty about what technologies will be allowed after 2030 is undermining efforts to secure investment.”
As part of plans to cut carbon emissions, the government says it will ban the sale of new petrol and diesel cars in the UK by 2030.
The recent EV infrastructure announcement was approved by the University of Warwick’s Advanced Engine Center (APC), which supports the UK automotive industry in developing low-emission vehicles.
The money, according to APC, will boost confidence in the UK’s capabilities and is critical to maintaining the UK’s position as a global leader in the transition to zero-carbon cars.
“This investment of over £350 million in electric vehicle charging infrastructure is a positive signal and will be an important support for the transition to the UK market.
“By 2022, the UK was second in sales of battery electric vehicles in Europe, bringing the total number of plug-in vehicles registered on UK roads to over one million, of which about 60 per cent are battery-powered. Charging infrastructure is critical to an efficient transition to carbon neutral.”