Ford risks £100million fine for not meeting electric car goals amid struggle to scrap petrol and diesel
One of the largest car brands in the world could face fines of more than £100million for failing to meet Government targets on electric vehicle sales in the UK.
Ford has emerged as the worst-performing major manufacturer in the electric car market, with just 6.8 per cent of its sales being electric vehicles in the first 11 months of 2024.
This falls significantly short of requirements under the Government’s Zero Emission Vehicle (ZEV) mandate, which demands manufacturers achieve 22 per cent electric vehicle sales in 2024.
Under the ZEV mandate, carmakers must achieve increasingly stringent targets for electric vehicle sales in the coming years, rising to 28 per cent in 2025.
Do you have a story you’d like to share? Get in touch by emailing motoring@gbnews.uk
This forms part of a longer-term trajectory, with manufacturers expected to reach 80 per cent of electric vehicle sales by 2030. The Government has recently launched a review of these targets, which were introduced by the previous Conservative administration.
However, unless there is a substantial revision, Ford and other manufacturers will need to dramatically increase their electric vehicle sales to avoid penalties.
The American carmaker’s market performance has declined sharply, with overall sales dropping 24 per cent in the first 11 months of 2024.
The company’s market share has fallen to just five per cent, a dramatic decrease from its 15 per cent share a decade ago.
It also marks a significant change for the brand which had been Britain’s biggest-selling manufacturer annually from the early 1970s to 2020.
According to analysis from New AutoMotive, Ford could fall around 7,000 cars short of its ZEV mandate target.
The company has only recently launched its £29,995 Puma Gen-E, a battery version of the UK’s best-selling vehicle. However, it does have other popular EVs on the market including the electric Capri, Explorer and Mustang Mach-E. All of these cost more than £43,000.
Under the ZEV mandate, manufacturers face fines of £15,000 for every vehicle that falls short of their electric sales target.
However, carmakers are not expected to pay penalties in the first year of the scheme due to several mitigating factors including allowances for reducing emissions across their fleet models and the ability to roll over shortfalls into later years.
Manufacturers can also trade credits in an emission-trading scheme with electric carmakers, providing additional flexibility in meeting their targets.
Reacting to potential changes to the ZEV mandate, Lisa Brankin, managing director of Ford of Britain, said: “The end goal is not in question but current demand for electric vehicles is lower than expected and not in line with the mandated trajectory.
“For manufacturers like Ford who have invested billions into new technologies and advanced manufacturing, there needs to be greater flexibility built into the scheme and government-backed incentives to help encourage customers to make the switch.”
LATEST DEVELOPMENTS:
- Elderly drivers with medical conditions may be required to make ‘adaptations’ to their car
- Motorists warned of new council powers that could see cars seized to ‘keep traffic moving’
- Elon Musk urged to build Tesla gigafactory in Scotland following Reform UK support – ‘Game changer!’
According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), Ford has sold 102,226 vehicles in the year to date.
While this is still a substantial number of vehicles sold, they fall behind rival brands like Audi (115,000), BMW (116,000), Kia (108,000) and Volkswagen (154,000).
A Ford spokesperson told The Times: “Ford will closely manage its overall CO2 performance and zero-emission vehicle volume.
“Ford is not currently adjusting planned volumes of internal combustion engine models but we will continue to closely monitor market conditions in the UK and adoption rates of electric vehicles.”