UK government unveils support for auto sector to go green
LONDON
The U.K. government has unveiled plans to give carmakers more flexibility in transitioning to electric vehicles in a bid to boost the sector in the face of "global economic headwinds."
The global auto sector has been hit hard by Washington's sweeping new tariffs, which impose a 25 percent levy on vehicles imported into the United States.
In an immediate sign of the fallout, U.K. luxury car manufacturer Jaguar Land Rover said it would "pause" shipments to the U.S. in April as it addressed "the new trading terms".
Prime Minister Keir Starmer said he was prepared to directly intervene to support affected sectors, and later unveiled plans to help the auto industry.
These included confirmation that all petrol and diesel car sales will be outlawed by 2030, with hybrids to be sold until 2035 and small manufacturers exempt.
The government has already announced 2.3 billion pounds ($3 billion) to boost the production of electric vehicles, and on April 6 said that it would ease rules on how manufacturers can achieve the 2030 target.
Under the new plans, carmakers can fall below the annual target for producing electric vehicles manufactured until 2026, if they make up for that shortfall before 2030.
Support for the U.K. car industry, which employs 152,000 people and adds £19 billion annually to the economy, "will be kept under review as the impact of new tariffs become clear", added the government.
