Ford UK’s chief has urged the government to introduce consumer incentives of up to £5,000 per vehicle to stimulate demand for electric vehicles (EVs) and help the industry meet ambitious climate goals. Lisa Brankin, chair of Ford UK & Ireland, emphasized that direct support for consumers is essential to ensure the sector’s viability and to meet the UK’s challenging net-zero milestones.
Speaking to Sky News, Brankin highlighted the gap between projected consumer demand and actual sales, noting that incentives like a potential scrappage scheme or VAT cuts on electric vehicles are crucial. “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 incentivise customers to buy EVs, and incentivise the van and car sales that we badly need in the UK.”
The call for incentives comes as the UK government faces mounting industry pressure. Last week, the government launched a “fast-track” review of its Zero Emission Mandate (ZEV), which sets targets for the proportion of new vehicles that must be electric. However, manufacturers have raised concerns, with Stellantis, the owner of Vauxhall, citing the ZEV as a factor in its decision to close a plant in Luton.
At Ford’s Halewood plant in Merseyside, Brankin emphasized the importance of EV incentives for ensuring a return on the company’s significant investment, which includes £380 million at Halewood and £2 billion in Cologne. She pointed out that consumer demand has not kept pace with expectations, stating, “The mandate is a really aggressive trajectory to 2030… the problem is customers are not moving as we would want.”
The launch of the Puma Gen-E, Ford’s smallest and most affordable electric vehicle, marks a significant step in the company’s EV strategy. With a starting price of just under £30,000, the Gen-E is positioned to be more accessible to the mass market. Brankin emphasized that while Ford has invested heavily in EV production, government support has not matched its efforts, and it is essential to ensure the financial viability of the transition. “The support we’ve had from the government is still far below the amount that we’ve poured into our business to make the EV transition,” she said.
Source: Sky News
