The American automotive giant Ford is bracing for potential penalties approaching £100 million due to its significant shortfall in electric vehicle (EV) sales within the British market. The manufacturer’s performance has been particularly concerning, with electric vehicles comprising merely 6.8% of its total sales during the initial 11 months of 2024.
Under the current zero emission vehicle (ZEV) mandate, manufacturers are required to achieve 22% electric vehicle sales in 2024, with targets escalating to 28% in 2025 and ultimately reaching 80% by 2030. Ford’s substantial underperformance has placed it in a precarious position as the worst-performing major automotive brand in the UK’s electric vehicle sector.
The situation appears more dire when considering Ford’s overall market position. The company’s total vehicle sales in Britain have plummeted by 24% in the first 11 months of 2024, resulting in a market share of just 5% – a dramatic decline from its 15% share a decade ago. This represents a significant fall from grace for a brand that dominated UK car sales from the early 1970s through to 2020.
Lisa Brankin, managing director of Ford of Britain, has advocated for increased flexibility in the ZEV mandate scheme, emphasising the need for government-backed incentives to stimulate consumer demand. However, this stance has drawn criticism from the electric vehicle lobby, which argues that traditional manufacturers have misread market trends and failed to adequately adapt their industrial strategies.
While the government has initiated a review of the ZEV mandate, Ford’s recently launched Puma Gen-E, its first mainstream electric vehicle, may arrive too late to significantly impact its 2024 performance. The estimated shortfall of 7,000 vehicles against the ZEV target could theoretically result in substantial penalties, although various mitigating factors and credit-trading mechanisms may provide some relief in the scheme’s initial year.
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