Car giants pushing for Government to soften tough net zero rules
CAR giants believe they are close to convincing the Government to soften some of its tough net zero rules.
Representatives from JLR, Ford, Vauxhall-owner Stellantis and Nissan met Transport Minister Heidi Alexander yesterday amid fears of more factory closures and job losses.
The Government launched an “urgent” eight-week consultation on its zero emission vehicle (ZEV) mandate on Christmas Eve — and there are now less than ten days left.
The ZEV scheme requires car makers to have 28 per cent of their sales come from electric vehicles by the end of this year and have phased out petrol cars by 2030 or face hefty fines.
Stellantis has blamed the ZEV mandate for the closure of Vauxhall’s Luton plant, even though the car maker met its 22 per cent target last year through heavy discounting.
Vauxhall yesterday confirmed that the Luton site will stop production between April and June, with the loss of 1,100 jobs.
The Society for Motor Manufacturers and Traders said yesterday that despite selling 41.6 per cent more electric vehicles in January than a year ago, the industry is still well short of the 28 per cent target.
The cost of transitioning car production to green power had been the driving force between Japanese car giants Nissan and Honda engaging in $60billion shock merger talks last year.
But yesterday it emerged the deal to create the world’s third largest car maker was in danger of breaking down after Nissan refused terms.
Car manufacturers are now pushing the Government to ignite consumer demand with incentives to buy electric vehicles, such as lower VAT or lower charging costs.
PRESIDENT’S TRADE BARBS
LIFE in plastic is not so fantastic with Trump tariffs, warns Barbie maker Matel.
The US toy giant has put their President Barbie — from the 2023 film — up against the the real-life one, following fears about supply chains.
President Trump, shown as a rival manufacturer’s doll above, has already put 10 per cent tariffs on China, where Mattel makes 40 per cent of its products.
Mattel said it would try to relocate some of its factories, but boss Ynon Kreiz added: “Pricing action is also one of the options we’re looking at.”
Tariffs on Mexico and Canada are also planned, though delayed until March.
COST’S NO PLUS
DISNEY has lost 700,000 of its customers after raising the cost of its streaming service.
The House of Mouse still counts 125million Disney+ users, but saw a fall after hiking a standard subscription in the UK by £1 to £8.99.
But the price jump, paired with a crackdown on password sharing helped push the platform to a £234million quarterly profit, after a £111million loss last year.
Overall, the firm saw its revenues rise by 5 per cent to £19.6billion — partly aided by Moana 2’s box office success.
THE Bank of England is expected to lower interest rates today from the current 4.75 per cent to 4.5 per cent.
Banks use the rate to set interest on mortgages. Inflation has eased to 2.5 per cent while there are concerns about the economy’s growth.
SERVICES JOB CUT
FIRMS in the services sector, the UK’s biggest industry, cut jobs at the fastest rate in four years, a survey has found.
Tim Moore of market experts S&P GLOBAL said: “Shrinking workloads and rising payroll costs meant service providers put the brakes on recruiting in January.”
The S&P Global UK services PMI survey scored 50.8 in January, down from 51.1 in December and the lowest for 15 months.
A poll of 1,500 firms by bank HSBC found 39 per cent are already raising prices in anticipation of higher tariffs.
FEARS OF JOBS AXE AT BANK
SANTANDER yesterday ruled out plans to offload its banking operations in Britain — but suggested that more job cuts could be on the way.
Global chairman Ana Botín said the “retail UK bank is not up for sale”, but suggested the Spanish-based firm could “reallocate capital” to more profitable countries or areas.
The group yesterday said it expected to transform the UK arm through “simplification and automation to drive cost efficiencies in 2025”.
Analysts suggested this would mean more ruthless layoffs on top of the 1,400 jobs axed last October.
Santander’s UK chair William Vereker stepped down last week amid speculation about the British arm’s direction.
The UK has been a headache for the global bank, having to put £295million to cover the motor finance scandal even as its pre-tax profits fell 38 per cent to £1.3billion.
A JAB AT SUCCESS
DRUG giant GSK gave investors a shot in the arm yesterday — launching a £2billion share buyback, while boosting its sales forecasts.
The vaccine maker says it is now on track to make £40billion in revenues by 2031 after its progress on new potential blockbuster drugs.
Sales last year rose by 7 per cent to £31.4billion — but profits dropped by over a third due to a US lawsuit. Shares jumped by 7.46 per cent to £14.83.