The United Kingdom has long sought to impose a ban on the sale of new ICE vehicles by 2030, though that piece of legislation has proven quite controversial lately given the global slowdown in terms of demand for all-electric vehicles. Trouble is, automakers that don’t meet the terms of the UK’s zero-emission vehicle (ZEV) mandate face hefty fines, and as Ford Authority previously reported, Ford Motor Company was one of the most at-risk automakers in that regard. However, it now seems as if Ford will avoid paying those fines after missing its 2024 EV sales target.
According to The Guardian, Ford – along with every other automaker that sells vehicles in the UK – won’t be paying these fines after each either met its EV sales target or will take advantage of alternative methods of doing so. Automakers were required to achieve a 22 percent EV sales mix in 2024, followed by 28 percent in 2025 and 80 percent in 2030 (with provisions for certain hybrids expected to account for the rest). However, automakers can compensate for missing those targets either by reducing emissions in their ICE vehicle fleets, or by buying credits from future years.
BMW, Mercedes-Benz, Geely, Tesla, and BYD all hit the EV sales mix and can sell credits to other automakers that didn’t, including Ford. A Ford spokesperson confirmed that the company would use such flexibilities, noting that “we do not anticipate the need to pay penalties.” However, the company added that “in current market conditions the cost of compliance under the scheme is unsustainable. Consumer incentives are crucial to boost demand – especially in the van market, where uptake lags behind passenger vehicles.”
Ford has long been quite vocal about the need for robust incentives in the UK and Europe, which it believes are necessary to meet current emissions goals in both parts of the world. In the meantime, The Blue Oval will apparently be using credits as a way to avoid fines, which it has also done in Europe.
Comments
That’s cheating and Ford knows every trick in the book. Purchasing credits never should have been a thing. Either you sell enough or you don’t. End of story. Same with US CAFE credits. Government absurdity.
It is your government, not mine, because I cannot vote there. You did.
So to hell with the fact that people just flat don’t want to buy these things? Ford et.al. did nothing wrong. They geared up to build the vehicles that are mandated by the totalitarian government, but they cannot force people to buy them. Why should they be penalized at all? THAT’S the “government absurdity”.
The entire system is a scam. Time to MEGA, I guess. It’s been a LONG time there.
Solving the home charger problem will go a long way towards increasing EV sales.