Boost for Nissan jobs as Business Secretary to announce consultation on electric vehicle targets

The Government is set to bow to pressure from car manufacturers including Nissan over the country's transition to electric vehicles, reports suggest.

Last week a senior Nissan executive warned that thousands of jobs and billions of pounds of investment at the company's Sunderland plant could be at risk unless urgent action ws taken to change the Zero Emissions Vehicles (ZEV) Mandate. The manufacturer was among others to have last week met with Business Secretary Jonathan Reynolds and Transport Secretary Louise Haigh to call for changes to the regulations which require at least 22% of vehicles sold by each brand this year to be zero-emission, rising to 80% by 2030.

Manufacturers have repeatedly warned the model is undermining business cases in UK factories. Nissan said the targets were "outdated" - a comment which came only weeks after it announced 9,000 job cuts globally on the back of poor sales. It has not said whether its North East operation would be impacted in those cuts.

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Now, Mr Reynolds is expected to announce a consultation on easing the ZEV rules, which will be launched in the coming weeks. At the moment, failure to abide by the mandate - or make use of flexibilities - such as buying credits from rival companies or making more sales in future years - will result in a requirement to pay the Government £15,000 per polluting car sold above the limits.

At a speech to the Society of Motor Manufacturers and Traders in London, Mr Reynolds will introduce the consultation, which is not expected to propose changes to the ZEV's percentages but will include amendments to the options for non-compliant manufacturers to avoid fines.

The Prime Minister's official spokesman said: "We do recognise the global challenges the industry are facing, which is why ministers have been getting around the table with key industry figures to discuss how we can ensure the transition delivers for them and the future of UK auto manufacturing. We'll bring forward a consultation on our proposals in this space in due course and how we implement the 2030 transition deadline and ensure that voices and insights from the industry are heard every step of the way."

Dan Caesar, chief executive of campaign group EVUK, said: "The switch to electric vehicles is creating jobs now and this will increase significantly in the immediate future, and open up opportunities for the UK. The Zev mandate is world-leading legislation that will put the UK firmly on the map with green tech investors and send a clear signal that the country means business when it comes to the global energy transition.

"Clean air and sustainable employment are surely the legacy we all want, and the existing zero-emission mechanisms are critical."

Quentin Willson, founder of pro-EV group 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."

Ahead of the SMMT event, Vauxhall's owner Stellantis said it is planning to shut its Luton site next April. More than 1,100 jobs at the van-making factory are at risk, but the firm is hoping to transfer "hundreds" of jobs to the group's Vauxhall site in Ellesmere Port.