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The Business Secretary has promised “substantial change” to controversial electric car sales targets as ministers scramble to ensure Nissan maintains a manufacturing presence in Britain.
On a visit to the Japanese car giant’s headquarters on the outskirts of Tokyo, Jonathan Reynolds assured executives that the Government was willing to reform the so-called zero emission vehicle (ZEV) mandate to address industry concerns.
Following the meeting, he said “a substantial change of policy” had been agreed, The Times reported.
Mr Reynolds said: “We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that.
“The whole Government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry.”
The Business Secretary declined to say what had been discussed specifically, but is said to have told Nissan bosses: “Nothing is off the table.”
On Friday, government sources insisted Mr Reynolds’s remarks did not reflect a change in position.
Ministers have previously said they will not alter the headline targets of the ZEV mandate, but have signalled they are willing to consider more generous “flexibilities” in the scheme and the relaxation of fines that have been described by carmakers as punitive.
A Whitehall source said a number of options were still being considered but no final decision had been made.
However, it was “wrong to suggest we are changing the trajectories”, the source added.
The comments come after Nissan executives warned ministers that the ZEV mandate could threaten the company’s factory in Sunderland, where it is preparing to produce the new Nissan Leaf.
Carmakers including Nissan, Ford and Vauxhall owner Stellantis have all complained about fines of £15,000 per car for missing electric vehicle (EV) sales targets, which they claim are moving too far ahead of “natural” consumer demand.
The mandate requires that 28pc of new cars sold in 2025 are electric, before gradually rising each year to 80pc by 2030.
“Flexibilities” built into the scheme already mean the de-facto requirement on manufacturers is lower, but a consultation run from late December to February suggested the Government could further expand these.
There is also speculation within the industry that the Government will reduce the level of fines, which companies have suggested will cost them vast sums.
Carmakers have repeatedly warned that the mandate’s targets do not reflect the true level of driver interest in EVs.