Electric vehicles (EVs) are less expensive to operate, potentially simpler to manufacture, and significantly better for the environment, playing a vital role in achieving carbon emission reduction targets.
Just a few years ago, electric cars were seen as the future. However, recent developments have revealed that Ford must drastically reduce the production of petrol cars to avoid hefty fines for not meeting EV sales quotas. This situation has raised concerns that the difficulties facing the electric car industry are just beginning—with the pursuit of Net Zero potentially acting as a catalyst for the deindustrialization of the West, leaving China as the apparent beneficiary.
The electric car scandal is just starting to unfold.
The decision to impose sales quotas for EVs, which seemed reasonable five years ago, now requires manufacturers to ensure that 22% of their sales are battery-powered, with this requirement increasing to 80% by the end of this decade, and 100% by 2035. Failure to meet these quotas results in substantial fines—up to £15,000 per vehicle—which feels quite severe.
EVs face significant challenges: insufficient range, a lack of charging infrastructure, high repair costs, expensive insurance, and plummeting second-hand values. When considering the total environmental impact, including raw materials and transport, EVs may not offer as much of an ecological benefit as anticipated.
The architects of recent legislation affecting businesses seemed not to consider the repercussions of failing to meet EV quotas. Now, Ford, a major global auto manufacturer and a significant player in Europe, has made clear the consequences. “We can’t push EVs into the market against demand,” stated Martin Sander, General Manager of Ford Model Europe, at a recent conference. “We’re not going to pay penalties… The only alternative is to reduce our shipments of [engine] vehicles to the UK and sell these vehicles elsewhere.”
Consequently, Ford will be scaling back its car sales in the UK. If you were hoping to purchase a new model, you might have to endure a long wait, reminiscent of the years East Germans waited for a Trabant. This situation could even lead to a black market for off-the-books Transit vans. Ford’s announcement may be the first public admission, but it’s likely other manufacturers are facing similar dilemmas, unable to shoulder hefty fines and thus, considering sales limitations on petrol cars.
The situation is further complicated as Chinese EV manufacturers start flooding Western markets with low-priced cars, supported by significant subsidies from Beijing. This puts Britain and Europe in a difficult position, forced to choose between accepting these imports—with all their associated emissions from global shipping—and watching the domestic auto industry crumble, or imposing hefty tariffs and seeing driving costs skyrocket.
The problem extends beyond cars. Energy costs are surging as Western countries shy away from developing oil and gas resources, remain cautious about fracking—even though it’s proved successful in the U.S. under presidents like Barack Obama and Joe Biden—and rely too heavily on inconsistent wind and solar energy. Some chemical and heavy industry companies are leaving Europe due to unaffordable power bills. Overly stringent supply chain regulations are strangling retail and fashion industries, and burdensome climate goals prevent companies from investing further. Step by step, Europe is deindustrializing, ceding leadership to China, and impoverishing itself.
This approach to achieving Net Zero is shaping up to be a monumental act of economic self-harm, possibly the worst in generations. It’s a flawed strategy that overlooks the basics of supply and demand, the consumer’s choice, and the global competitiveness of our industries. We are prematurely reducing emissions compared to the rest of the world.
What’s needed is a complete overhaul of our current climate strategy, crafting a new plan that safeguards living standards and supports major companies. In the meantime, if you’re considering a new Ford, place your order soon. What was once a readily available vehicle is about to become a rare commodity, and the wait could be extensive.
