Ford has announced plans to cut 800 jobs in the UK as part of a broader move to reduce 4,000 roles across Europe by 2027. The majority of these job cuts will be in administrative and product development roles, with manufacturing sites in Dagenham and Halewood, as well as the logistics base in Southampton, unaffected. Ford’s decision to scale back production, particularly of key electric vehicle (EV) models, follows concerns over slow demand for EVs and the mounting pressure from the UK government’s zero-emission vehicle (ZEV) mandate, which has imposed strict sales quotas.
The UK’s ZEV mandate requires automakers to sell increasing percentages of electric cars each year, starting at 22% in 2023 and rising to 28% in 2024. Manufacturers who fail to meet these targets face substantial fines or are forced to buy credits from others who exceed the quotas. Despite this, only 18% of new cars sold in the UK this year have been electric, with many automakers falling short of their targets. This has led to growing calls from manufacturers, including Ford, for more flexibility in the mandate, particularly during the early years when demand for electric cars remains low.
At a meeting with the Transport Secretary, key figures from the automotive industry, including executives from Ford, Nissan, and other major manufacturers, warned that the government’s strict EV quotas risk damaging the UK’s car industry. Nissan, in particular, raised alarms, claiming that the mandates could lead to irreversible harm to the UK’s automotive sector, undermining both jobs and investment. The company also noted that foreign manufacturers benefiting from the credit scheme do not produce cars in the UK, meaning that the UK industry might end up subsidizing electric vehicle sectors abroad.
The UK government, however, remains committed to its target of phasing out petrol and diesel car sales by 2030, a policy that has been backed by Labour, despite recent delays announced by Prime Minister Rishi Sunak, who shifted the target to 2035. Government officials have acknowledged the challenges facing the automotive industry and have promised to work more closely with carmakers to support the transition to electric vehicles. The Department for Transport has suggested that there could be further support measures to assist with the shift to EVs, including addressing slower-than-expected demand and the rollout of charging infrastructure.
Despite the ongoing challenges, the UK government has maintained that the ZEV mandate provides necessary certainty for long-term investment in the automotive sector, which is essential for meeting the country’s net-zero ambitions. In a bid to mitigate the impact of low EV demand, industry leaders have called for increased government-backed schemes to boost consumer interest in electric vehicles, alongside quicker infrastructure development. The government has yet to offer a clear indication of how it might adjust the rules or targets to ease the burden on car manufacturers during this transition period.
