How Car Giants' Lobbying Against EV Rules Threatens Jobs and Climate Goals
The Guardian2 weeks ago
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How Car Giants' Lobbying Against EV Rules Threatens Jobs and Climate Goals

INDUSTRY INSIGHTS
electric-vehicles
automotive-industry
lobbying
climate-policy
uk-jobs
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Summary:

  • Major car manufacturers lobbied against UK EV sales rules, claiming strict regulations threaten jobs and investment.

  • BMW, JLR, Nissan, and Toyota argued that penalties could cost hundreds of millions and harm competitiveness post-Brexit.

  • The Labour government added flexibilities to the ZEV mandate after lobbying, allowing more petrol car sales.

  • Climate advisers warn that weakening EV rules could increase carbon emissions, despite industry meeting 2024 targets.

  • Advocates counter that the mandate effectively drives the EV transition and should be accelerated for cleaner transport.

The Battle Over Electric Vehicle Mandates in the UK

Major car manufacturers, including BMW, Jaguar Land Rover (JLR), Nissan, and Toyota, have privately lobbied the UK government to weaken electric vehicle (EV) sales rules, arguing that strict regulations could jeopardize British jobs and investment. Documents obtained by Fast Charge and shared with The Guardian reveal that these companies claimed maintaining the current zero emission vehicle (ZEV) mandate would cost them hundreds of millions of pounds and harm their competitiveness.

Key Arguments from Carmakers

  • JLR warned that unchanged rules would "materially damage UK producers’ ability to invest in vehicle lines."
  • BMW highlighted that the UK has become a more difficult place to produce vehicles post-Brexit, and the ZEV mandate is more radical than EU or California rules. They emphasized risks to up to 50,000 jobs in the UK, including supply chains.
  • Toyota stated that penalties could amount to hundreds of millions of pounds, threatening employment and investment across the industry. The company, which focuses on hybrid cars, successfully lobbied for hybrid sales to be allowed until 2035.
  • Nissan argued for more flexibilities to avoid diverting funds away from battery EV research and development in the UK.

Government Response and Industry Impact

The last Conservative government introduced the ZEV mandate, requiring automakers to sell an increasing proportion of EVs each year or face fines. Despite EV sales accounting for over a fifth of the market in July and all carmakers meeting 2024 targets, the industry faced challenges due to overestimated demand, leading to price cuts.

After intensive lobbying, the Labour government added "flexibilities" in April 2025, allowing carmakers to sell more petrol cars. This move was criticized by climate advisers, who warned it could increase UK carbon emissions.

Counterarguments from Advocates

Campaigners like Ben Nelmes of New Automotive argue that the ZEV mandate has proven effective in driving the transition to electric vehicles. They believe the focus should be on accelerating the shift to cheaper, cleaner transport.

Tom Riley of Fast Charge criticized carmakers for using job threats as a "cynical tactic" to weaken climate policy.

Mike Hawes of the Society of Motor Manufacturers and Traders (SMMT) supported the government's changes, stating that previous targets risked "decarbonisation at the cost of de-industrialisation."

Company Statements

  • BMW supports climate targets but believes consumer demand, not mandates, should drive the transition.
  • Nissan welcomed the government's pragmatic approach, including consumer incentives.
  • JLR and Toyota declined to comment.

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