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Miliband refused to meet motor trade body on EV mandate

Created at 30 Jul · 3:11 AM1 source↑ Market-relevant
IN SHORT

Ed Miliband, as UK Energy Secretary, did not meet with the Society of Motor Manufacturers and Traders (SMMT) to discuss the zero-emission vehicle mandate. The SMMT expressed frustration over the lack of engagement, warning the policy's ambition could harm the UK's carmaking sector.

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Key Numbers

30 percentcurrent ZEV sales requirement
34 percentZEV sales target for next year
46 percentZEV sales target for 2028
2035target for all new vehicles to be electric
2 yearsMiliband's tenure as Energy Secretary

Who's Involved

Ed Miliband
UK Energy Secretary who refused meetings with SMMT
SMMT
UK motor industry trade body seeking mandate review
Mike Hawes
SMMT boss who reported lack of engagement
Stellantis
Automaker that cited ZEV mandate for plant closure
Andy Burnham
Chose Miliband to run the Foreign Office
Liam Byrne
Chair of the business and industry committee
Jonathan Reynolds
New business secretary met by SMMT
Miliband refused to meet motor trade body on EV mandate

↳ Why This Matters

The refusal of a key minister to engage with the automotive industry on a critical policy like the ZEV mandate highlights potential governmental disconnects and raises concerns about the future viability of the UK's car manufacturing sector amidst ambitious environmental targets.

Key facts

  • Ed Miliband, during his tenure as UK Energy Secretary, did not meet with the Society of Motor Manufacturers and Traders (SMMT).
  • The SMMT requested meetings to discuss the government's zero-emission vehicle (ZEV) mandate.
  • The ZEV mandate requires car and van manufacturers to sell an increasing percentage of electric vehicles.
  • Manufacturers argue the current targets are too ambitious and are delaying investment decisions.
  • Stellantis cited the ZEV mandate as a reason for closing its van plant in Luton.

Ed Miliband, during his two-year term as the UK's Energy Secretary, declined to meet with the Society of Motor Manufacturers and Traders (SMMT) to discuss the government's zero-emission vehicle (ZEV) mandate. SMMT chief executive Mike Hawes stated that engaging with the Department for Energy Security and Net Zero (Desnz) was the least successful of their efforts with government departments.

The ZEV mandate, a key environmental policy, compels carmakers to increase the proportion of electric vehicles they sell over time. Manufacturers and the SMMT argue that the mandate, even in its early stages, is too ambitious and is causing uncertainty, leading them to pause investment decisions. The current requirement is that 30% of vehicles sold must be zero-emission, with targets set to rise to 34% next year and 46% by 2028, aiming for all new vehicles to be electric by 2035.

Responsibility for the mandate is shared across the Department of Transport, the Department for Business and Trade (DBT), and Desnz. This diffusion of responsibility has led to internal debate, with the DBT and Number 10 reportedly considering watering down the proposals to support struggling carmakers. Reports suggest that former leader Keir Starmer was preparing to intervene to address industry concerns.

Hawes emphasized the need for an urgent review of the mandate, stating it should be brought forward from its scheduled 2027 date. He noted that Stellantis, the maker of Vauxhall vehicles, cited the policy as a significant factor in its decision to close a van-making plant in Luton in 2024, with its chief executive warning that all UK production could cease without policy changes. In contrast, the SMMT reported positive engagement with other government departments, including a meeting with the new business secretary, Jonathan Reynolds.

Frequently asked questions

The ZEV mandate is a government policy that requires car and van manufacturers to sell an increasing percentage of zero-emission vehicles each year, with the ultimate goal of phasing out internal combustion engine vehicles.

The SMMT and its member manufacturers believe the current targets are too ambitious and are creating uncertainty, potentially harming the UK's carmaking industry and leading to stalled investments.

Responsibility for the ZEV mandate is shared across the Department for Transport, the Department for Business and Trade (DBT), and the Department for Energy Security and Net Zero (Desnz).

Stellantis cited the ZEV mandate as a key factor in its decision to close a van-making plant in Luton in 2024.

What Happens Next

01The SMMT is seeking an accelerated review of the ZEV mandate.
02Carmakers are awaiting clarity on the mandate before making investment decisions.

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Cadence

How It Developed

Ed Miliband, as UK Energy Secretary, refused to meet with the SMMT.
The SMMT sought discussions regarding the zero-emission vehicle mandate.
The SMMT warned the mandate's ambitious targets could harm the UK's carmaking sector.
The mandate requires carmakers to increase the share of electric vehicles sold.
Responsibility for the mandate is shared across multiple government departments.
Industry pressure and calls for a review of the mandate have been raised.
Stellantis cited the policy as a factor in its decision to close a UK van plant.

Sources

T1
Miliband refused to meet motor trade body to discuss zero emissions mandateCity AM

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