Currently reading: EV subsidy 'under threat'
Previous government's £5000 electric car subsidy may not be backed by the new government

The planned £5000 green car subsidy and government support for the British car industry could be under threat, according to new business secretary Vince Cable.

Cable was speaking at Toyota’s Derbyshire plant for the launch of the new Auris hybrid when he said that the government has not yet made a decision on whether it will implement the £5000 per car, low emissions subsidy that was promised by Gordon Brown’s previous Labour government.

The grant is something many manufacturers say is essential if Britain is to become a world centre for the production of low emission vehicles.

Cable went on to say that Britain’s carmakers were no longer in an “emergency situation”, and the government “can’t go round waving a chequebook at British industry”.

Cable also mentioned General Motors’ plan to build the Vauxhall/Opel Ampera at Vauxhall’s Ellesmere Port plant in Merseyside, saying that GM has not yet approached the government for a grant but that such a project “shouldn’t depend on government support” and “we can’t give money to every company that asks for it”.

This comes after the new coalition government secured financial support for Nissan and Ford to further develop new technologies earlier this month.

Tom Gregory

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WooDz 29 June 2010

Re: Electric car subsidy 'under threat'

Actually the government is subsidising out petrol as it's blended with 10% ethanol which will increase to 15% by 2020 as part EU regs to have 15% or transport running on Bio-fuels. So instead of helping create a proper Bio-fuel infrastructure the government has every vehicle running of 15% ethanol. Whether the some cars can actually run on such a blend is a different matter. Unfortunately it's the owner who will bare the brunt if it can't as the piston heads crack under the extra heat.

What am I getting at? If the government is going to sub anything I'd prefer them to invest in bio-fuels and hydrogen.

Citytiger 29 June 2010

Re: Electric car subsidy 'under threat'

il sole wrote:

Too damn right! why should OUR tax subsidise something that is dead before it's even born..??? haven't people noticed that we're in a whole heap of debt because the last government couldn't stop spending??? let's get tough and stop the waste!

With regards to hating EVs, well that's probably because most of us who drive 'normal' cars are fed up to the back teeth of being told by sanctamonius tree hugging, lentil and tofu eating lefties that we're killing the planet simply by going about our daily business. leave us alone, let us use all the oil up, then we'll be happy to drive in EVs

You beat me to it, I agree with you completely, look at all the so called "A" list celebs in America driving around in Prius', whilst their Government fail to implement emission regulations, or slap big taxes on fuel. If you want an EV buy one but dont expect me to pay for it, if you do, I might want to repossess the part I paid for, perhaps a wing mirror and an alloy wheel will cover my contribution.

Reasonable 29 June 2010

Re: Electric car subsidy 'under threat'

I think it's worth getting this in perspective. The total volumes of EVs likely to be sold in this country over the next few years is tiny. We're probably looking at a tens of thousands max. 99% of people (and organisations) will look at the first generation of EVs and not buy one. The last 1% would probably buy one with or without the subsidy. Look at the people who queue through the night to be the first to buy an iphone... If the government keep the subsidy it's not going to amount to a huge outlay - probably no more than selling them VAT free. If they don't keep the subsidy, it's not going to be the end of EVs. My prediction - EVs won't be mainstream for some time yet, but the few available on the market will sell out.