Electric vehicle policies not operating in a way anyone intended them to, says Jonathan Reynolds

'I’m going to be frank with you – I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to'

The Business Secretary says he is concerned that the UK's plans to increase the number of electric vehicles are not going as planned.

This comes as Vauxhall's parent company announced it would be shutting down its Luton factory. Jonathan Reynolds voiced his concern to car manufacturers about how policies aimed at phasing out new petrol and diesel vehicles by 2030 were functioning.

He promised to seek a "a better way forward", while still maintaining the target. His remarks were made during a speech to the Society of Motor Manufacturers and Traders (SMMT), following the announcement by Stellantis, Vauxhall's owner, that it will close its van production plant in Luton, putting 1,100 jobs in jeopardy.

The closure is part of the group's plan to consolidate its UK van manufacturing and create an all-electric hub at its Ellesmere Port facility in Cheshire, where it plans to invest £50m. Stellantis stated that the decision was made in light of the UK's "stringent" zero-emission vehicle mandate. SMMT chief executive Mike Hawes said the news from Stellantis, along with Ford's recent decision to cut 800 jobs from its UK operations over the next three years, showed that times were "very tough".

He added: "We’ve seen announcements globally of production cuts, profit warnings, job losses and the UK was never going to be immune. A new announcement last weekend and, regrettably, today, are not just a sobering reminder of the challenges the industry faces, but most importantly, of worrying and grave concern for the livelihoods of so many."

Alongside its annual dinner on Tuesday, the trade body also warned that the pace of the transition to electric vehicles could "devastate" the automotive industry as demand for zero emission vehicles "failed to meet ambition". Under the zero-emission vehicles (Zev) mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, with the threshold rising each year.

Under the current rules, the mandate will reach 80% by 2030, but the Government has committed to bring the ban on the sale of new petrol and diesel cars and vans forward from 2035 to 2030, reversing a change introduced by Rishi Sunak’s government last year. In his speech to the SMMT, Mr Reynolds said the Government was "absolutely committed" to the 2030 target, but had "heard you loud and clear on the need for support to make this transition a success".

Announcing a "fast-track" consultation on changes to the Zev mandate, he said he was "profoundly concerned" about how the policy was operating. He said: "I’m going to be frank with you – I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to."

The government's consultation on the Zero Emission Vehicle (Zev) mandate might not alter the set percentage targets; however, it may update how carmakers who miss these goals can sidestep fines. Despite this, EV advocates are pressing the government to maintain its stringent objectives.

Quentin Willson, founder of the pro-electric vehicle organization FairCharge, said: "Ministers should not dilute the UK’s EV ambitions. Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken. Our Zev mandate targets are world-leading. Don’t let the intense lobbying from legacy auto ruin them."

Stellantis has big plans for Ellesmere Port, eyeing the second half of 2026 to kickstart a new consolidated production line, which will secure hundreds of jobs in Cheshire for those willing to move from Luton. The company is also offering support, retraining opportunities, and collaboration with local authorities and businesses to assist Luton employees in finding new roles.

A government spokesperson has commented on the development saying: "While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected.

"We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals."

"The Government is also backing the wider industry with over £300m to drive uptake of zero-emission vehicles and £2bn to support the transition of domestic manufacturing."