Transport Committee - Plug-in vehicles, plugged in policy?Written evidence from General Motors UK

Introduction

1.1 This is the submission of General Motors UK to the Call for Written Evidence issued on 15 March by the House of Commons Transport Committee in connection with its inquiry into Low Carbon Vehicles.

1.2 General Motors UK Limited (GM) represents the Vauxhall and Chevrolet brands in the UK and directly employs c.4,500 people at our manufacturing plants in Luton and Ellesmere Port, at our engineering facility at Millbrook Proving Ground in Mid Bedfordshire and at our Warehouse operations and Corporate Headquarters in Luton. In addition, through our nationwide network of retailers a further 23,000 people are dependent on GM as well as a further 7,000 people via our UK supply chain. GM is a large UK manufacturer and is responsible for 5.7% of UK car production and 62% of UK commercial vehicle production.

Position Summary

Ultra-low carbon vehicles will substantially help to decarbonise transport.

The government should continue to create a favourable tax and regulatory regime for plug in vehicles.

In order to be more effective, the plugged in places scheme should look to harmonise the various schemes across the UK, certain areas need to improve on communicating their roll-out plans and there needs to be more support for re-charging schemes in the home and at work.

In the future, GM foresees that electric vehicles will be part of a range of different propulsion systems.

Whilst there is a need for a standardised plug-in cable in the UK for vehicle manufacturers and others provision should also be made to the standard 3-pin plug-in vehicles in or coming to market.

Main Points

The contribution of plug-in vehicles to decarbonising transport

3.1 With the fear of global warming and climate change, over the past few decades we have seen a move away from the reliance on fossil fuels to new green, energy efficient technologies. In the automotive industry this has led to vehicle concepts evolving from the internal combustion engine to new propulsion systems such as the Battery Electric (BE), Plug-in Hybrid Electric (PHE) and Extended-Range Electric Vehicles (EREV).

3.2 Vauxhall’s flagship, plug-in EREV vehicle, the Ampera, allows up-to 50 miles of driving from its battery pack, which meets the needs of 85% of all UK commuters.1 The 1.4 litre petrol engine also means that the vehicle can travel a further 310 miles, thus dealing with the problem of range anxiety faced by many consumers. Its tailpipe emissions of only 27g CO₂ per km mean that it falls well within the definition of an ultra-low carbon vehicle as set out by the European Union.2 Ultimately, the uptake of these vehicles going forward will mean that less carbon dioxide and other emissions will be released into the atmosphere, decarbonising the transport system and lowering overall emissions to help the government reach its legally binding carbon dioxide targets by 2050.

Uptake of plug-in vehicles and how this can be improved

4.1 The plug-in car and van grant which allows motorists purchasing a qualifying low carbon vehicle to claim 25% of the cost of purchasing a vehicle up to a maximum of £5,000 or £8,000 is critical to the success of the future roll-out of these vehicles. Measures like these which make the vehicle more attractive to consumers will help to ensure the transition from solely internal combustion engines to plug-in vehicles. This help is welcome not least because the automotive sector has invested billions of pounds in bringing this new technology to market and will not see payback for many years to come. Added to that, we are asking customers to change purchasing behaviour to vehicles with higher initial costs but with a more competitive total cost of ownership throughout their lifespan. It is essential therefore that grant schemes like these are continued in the long-term and that the government through its tax and regulatory regime incentivises uptake of these vehicles. Furthermore, encouraging public sector procurement of ultra-low carbon vehicles would be a welcome step in this direction.

4.2 We were disappointed with the recent announcements in the 2012 budget relating to low carbon vehicles. In order for low carbon vehicles to be successful they require a taxation system that encourages their uptake. Increasing the company tax rate for low emission vehicles after 2015 and preventing leased business cars being eligible for first year capital allowances will not help this. This has made purchasing a plug-in vehicle less attractive to the corporate consumer with little overall economic benefit to the Exchequer. We urge the government not to go ahead with such detrimental measures in future if it wishes to support the roll-out of these vehicles. We firmly back the Society for Motor Manufacturers and Trader’s (SMMT’s) position that long-term certainty is required in the tax regime so that both consumers and industry have confidence to plan and invest.

4.3 If the government is committed going forward to harmonising the UK with current EU legislation, we believe that the government should distinguish between low and ultra-low carbon vehicles ie those that emit less than 50 grams of CO₂ per km in the tax system. Encouraging the uptake of vehicles best able to decarbonise the transport system, will help ensure that the government meet its legally binding CO₂ targets.

The effectiveness of the Plugged-In Places scheme

5.1 The scheme has in part done what it set out to achieve in that it has funded projects that see the start of electric re-charging infrastructure rolled-out to certain parts of the country. However in an emerging market, both private sector companies and government have over the past few years been working towards an intensive period of knowledge acquisition to understand the best approach to support this new technology.

5.2 We believe going forward that different charging schemes from across the UK should be harmonised. At the current point in time in order to use electric points in different parts of the country you would have to be a member of multiple schemes. For example if you use an Ampera or Chevrolet Volt and you are travelling to different parts of the country, in order to re-charge the vehicle you always need to carry about five or six charging scheme cards. This is off-putting and complicated for customers and only serves to reinforce concerns over range anxiety. A single membership that allows customers access to all charge points within the plugged-in-places scheme should be pursued.

5.3 Many projects that have been funded by the scheme have been difficult to obtain information from. London have communicated their ideas and been pro-active in seeking help and support for their plan to roll-out to their respective areas. However, in places like Greater Manchester we have not found this the case. We would like to see more detailed plans for the roll-out of charging points in all areas of the country the scheme is in place.

5.4 Alongside these projects we would also like to see greater emphasis placed on encouraging charging in the home and at work to avoid the extra cost of upgrading the national infrastructure. Vauxhall’s new car of the year, the Ampera, is also available with a British Gas fast charge kit so that these vehicles can be charged at home. These are the type of schemes that we hope plugged-in places can encourage going forward. Re-charging from home is not only the most convenient place to re-charge but if done at night can maximise the environmental and economic benefits of these vehicles, whilst also minimising the impact of peak-use on our aging national grid system. We welcome the fact the Office for Low Emission Vehicles (OLEV) are working with the SMMT to ensure consumers are enabled to charge at home and off-peak.

The role of plug-in vehicles alongside other technologies to reduce carbon emissions from road transport

6.1 Going forward we foresee that electric plug-in vehicles will sit alongside other forms of technology such as diesel hybrids and hydrogen fuel cell powered vehicles to reduce carbon emissions. These vehicles will start being introduced in 2015 and will become more common through to 2020, so consideration must be given to assisting with higher purchase costs and re-fuelling infrastructure gaps which must be addressed shortly. We also firmly back the SMMT’s position; the government should consider how best to garner further investment for research and development in low carbon projects. General Motors UK believe this will help pave the way for the above mentioned technologies to become even more efficient and looks forward to working with both organisations to help achieve this.

Action taken by other countries to encourage the uptake of plug-in vehicles

7.1 In Holland a decision was taken over which plug-in cable should be standardised for re-charging electric vehicles a long time ago. The mennekes plug has now become the standard charging plug, helping manufacturers and others design and build their products accordingly. In the UK, a standard re-charging plug may require government intervention. Whilst we would welcome the move to a standardised plug-in cable for all charging points, we would not like to see this come at the expense of vehicle owners who require the three-pin plug-in cable.

April 2012