The UK’s push toward ramping up pure electric vehicle production threatens to drive the world’s largest carmaker out of the country.
Toyota, which has had a presence in Britain since 1989, has warned the government it may be forced to pull out due to green policies designed to get to net zero by 2050 making it financially unviable to make cars in the UK.
The firm is reportedly considering shutting its Derbyshire factory and its engine plant in north Wales, which employs around 3,000 people collectively, as a result of higher zero-emission production targets coming into force from 2024, according to The Sunday Times.
Carmakers that fail to meet the goals under the zero emission vehicle (ZEV) mandate will have to pay a fine or buy credits from rivals that have exceeded their targets.
The ZEV system is still being finalised, the department for transport told The Sunday Times.
The proposed system is similar to an existing European regime in which the area’s automobile sector is issued a set number of carbon permits which can be exchanged between firms.
The intention of the system is to set a specific amount of carbon released by the sector and make it more expensive to emit harmful pollutants.