After originally announcing that it planned to transition its entire passenger vehicle lineup in Europe to EVs by 2030 or sooner, Ford wound up ditching that plan recently, and will continue to sell hybrids and ICE models for the foreseeable future amid shifts in consumer demand. However, Ford UK doesn’t really have that luxury given the country’s decision to move forward with a plan to ban the sale of non-zero-emissions vehicles in the coming years, though soft demand for EVs has many concerned that such a goal is unrealistic. Now, Ford UK is once again calling for robust incentives to help conjure up EV demand in that country.
Back in October, Ford UK managing director Lisa Brankin asked the British government to cut its added tax on EVs in half and boost incentives for all-electric vehicles in an effort to conjure up consumer demand, sentiments that she reiterated just last month. Now, Brankin revealed a bit more information in regard to what she thinks the UK government needs to do to accomplish its goal of banning the sale of new ICE models by 2030, according to Sky News.
“The number one thing we want is direct customer incentives, perhaps a scrappage scheme, we have been calling for a cut in VAT on electric vehicles,” Brankin said. “Something that will incentivize customers to buy EVs, and incentivize the van and car sales that we badly need in the UK.” When asked if the incentives would need to be in the range of £2,000-£5,000 ($2,557 to $6,393 USD) to be effective, Brankin added “that is a good question, but it would need to be in that region. It will need to be substantial.”
Meanwhile, massive hits to its passenger vehicle business in Europe recently prompted Ford to announce that it will eliminate 4,000 jobs in that region, with most of those cuts occurring in Germany and the UK – which it hopes will come mostly from voluntary retirements and not outright layoffs. The Blue Oval is also making changes to Ford Explorer EV and Capri production that will result in the addition of more short-time days at the Cologne Electric Vehicle Center in Germany starting in Q1 2025. As Ford Authority recently reported, the automaker had already scaled back production of both of those EV crossovers for the remainder of 2024 amid weak demand.
Comments
If manufacturers need the govt. to hand out taxpayer dollars, it means there is insufficient consumer demand to support the market. i.e. Ford wants the taxpayer to subsidize their demand…
What a recipe for disaster! Bribing the taxpayer with his own money to buy something he doesn’t want..
Exactly!!!!
Build a better product and you will have the demand you are looking for. Take taxpayer money and then you will become fat and lazy and stop innovating.
Incentives will not work for now. First and foremost is the infrastructure has to put in place. Secondly lower the prices so people can afford them. Third when charging at home it makes your electric bill higher. That’s why people are buying hybrids. Cheaper and doesn’t need infrastructure.