Japanese automaker Nissan, a cornerstone of the UK’s EV manufacturing capacity, told the government that without changes, the costs of complying with green car rules would reach “critical levels.” This warning was a key factor in the government’s eventual U-turn on its Zero Emission Vehicle (ZEV) mandate.
In a private submission, the company, which operates Europe’s first major electric car factory in Sunderland, argued that the financial burden would divert essential funds away from UK-based research and development in battery technology. This painted a scenario where the policy was inadvertently stifling future innovation.
Nissan’s position was bolstered by similar arguments from across the industry, with Toyota warning of massive fines and JLR cautioning against a loss of investment in vehicle production lines. The unified message was that the mandate, while well-intentioned, was economically unviable in its original form.
Following the government’s decision to introduce more “flexibilities,” a Nissan spokesperson praised the “pragmatic approach.” However, the episode highlights the immense financial pressures involved in the EV transition and the power of manufacturers to influence the pace of change.
