The fortunes of the UK’s automotive supply chain are being put at risk by ill-conceived and misaligned policies that are driving short-term behaviours and could determine long-term negative decisions, warns Institute of the Motor Industry president professor Jim Saker.
When on December 19 Robert Forrester of Vertu Motors called the Government ‘delusional’ over the new electric car targets I totally agreed with him, but also I would have added the word ‘damaging.’
Being delusional is holding firm beliefs that are not based in reality and persist despite evidence to the contrary and as a result when implemented are damaging to people who are forced to operate under these misguided beliefs.
When, in 2020, Boris Johnson announced the banning of the sale of ICE new cars from 2030 there was no strategy or structure put in place to achieve it. In so doing he set in motion a set of actions that are detrimental to the UK, its customers, manufacturers, suppliers and retailers as well as opening up the whole issue of its the impact on national security.
The policy of not aligning with Europe means the UK car industry have been handed over to Chinese importers who don’t face the same tariffs in the UK as they do in the EU.
The UK becomes the targeted dumping ground for their products.
By doing so car companies such as JLR, Toyota, Nissan, Ford and Stellantis, who have been manufacturing in the UK for decades and providing skilled employment opportunities, are penalised.
Ironically when the Western carmakers wanted to sell into China it had to be done as JVs, allowing the IP to be used to produce competing products that are now being sold back into the UK.
Why is it that the Government is not imposing the same restriction on Chinese manufacturers?
By forcing the EV targets and penalising OEMs for not hitting their targets they are forcing companies to move away from offering products that customers want, and force them to buy those on a Downing Street approved list.
As Forrester states, the OEMs will simply ration petrol, diesel and hybrid cars to avoid fines.
Ironically the Government fines the OEMs for not hitting EV targets while they themselves have failed to hit their own targets for providing EV charging points throughout the country.
Shouldn’t the Government be compensating the industry for their failure?
With an open-door policy to Chinese vehicles, the Ministry of Defence has had to ban Chinese vehicles and those with Chinese cellular networks in them from any sites where sensitive information is likely to be being held.
In addition to this we now have the 3p per mile tax on EVs and 1.5p on PHEVs coming in, with no idea how this will be measured. This will incentivise a stream of criminal activity that will develop the ability to hack into a car’s management system to keep the mileage to a minimum and reduce the tax.
Also, it gives the opportunity to hack into a competitor’s fleet/stock and increase the mileage.
With Christmas just behind us, my hope is that this pantomime farce will not continue and in 2026 common sense will prevail.
Author: Professor Jim Saker