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. As such, Ford has called for the UK government to roll out robust incentives to spur EV sales on multiple occasions. Ford did manage to avoid paying fines for missing its own EV sales targets in 2024 by buying credits, and now, it seems as if The Blue Oval and some of its peers will get more relief in that regard, largely due to new tariffs imposed on imported goods by the Trump administration in the U.S.
UK Prime Minister Keir Starmer just announced that the country will revise its Zero Emission Vehicle Mandate and allow for hybrids to be sold through 2035, while some smaller manufacturers will also be exempt from the rule altogether. Revisions to the ZEV mandate are expected to be finalized this spring, but are designed to give automakers more flexibility between now and 2030 in terms of meeting stair step goals, providing tax breaks to EV buyers, and include additional investments from the UK government itself.
In addition to these changes, the UK will maintain its existing phase-out dates for ICE and diesel models, but it’s also extending the ability for automakers to borrow credits in 2024-2026 to enable repayment through to 2030, and it’s also extending the ability for those companies to transfer non-ZEVs to ZEVs from 2024-2026 as well, out to 2029. Automakers will now be able to transfer van credits to cars – car credits can be exchanged for 0.4 van credits, while one van credit can be swapped out for two car credits. Vans with an internal combustion engine will also be allowed to be sold until 2035, alongside full hybrids and plug-in hybrid vans.
These changes come amid various criticisms from Ford and its peers, which prompted UK officials to announce that they would review the ZEV mandate late last year. Now, combined with the implementation of 25 percent tariffs on imported vehicles (and soon, components), the government has opted to take action.
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