Business
UK will have to follow EU and delay ban on sale of petrol cars, experts say
The UK’s ban on new petrol and diesel cars will have to be delayed after it emerged the EU is poised to push back its own crackdown, senior industry figures have suggested.
At the heart of the warning is concern that a U-turn on the continent would mean not enough electric vehicles being built in the next half decade to allow Britain to push ahead with its plans.
The EU was set to ban new petrol and diesel cars from 2035, five years after a similar ban is due to be brought in in the UK, but that measure is set to be watered down as early as next week following pressure from carmakers and powerful countries in the bloc, such as Germany and Italy.
German chancellor Friedrich Merz on Friday said he “supported” a climbdown, saying the “reality is that there will still be millions of combustion engine-based cars around the world in 2035, 2040 and 2050”.
Amid concerns over the future of one of Europe’s most important sectors, and a growing threat from China, Manfred Weber, the president of the EPP, the largest party in the European Parliament, said this sent an important signal “to the entire automotive industry and secures tens of thousands of industrial jobs”.
The UK’s net-zero policies, led by environment secretary Ed Miliband, include a ban on the sale of pure petrol and diesel cars from 2030. Dr Andy Palmer, a former chief executive of Aston Martin, said the UK would have to follow the EU’s lead because of the high number of vehicles traded between the two areas.
“It becomes very difficult because if the EU drops their ban the factories there won’t ramp up their EV (electric vehicle) production in the way forecast. There wouldn’t be enough EVs to meet the demand required in the UK,” he told the Times. Other industry sources told the paper that a review of the mandate which sets out the proportion of vehicles manufacturers sell that must be green due for 2027 would have to be brought forward.
But supporters of the vehicles called on the EU to stick to its current plan.
Chris Heron, the secretary-general of E-Mobility Europe, the trade body, said: “Europe must keep a clear investment signal for the shift to electric vehicles. Weakening the 2035 target would be a worrying backwards step, dragging us back to yesterday’s technologies and undermining the industries investing in Europe’s electric future”
A government spokesman said: “We remain committed to phasing out all new non-zero emission car and van sales by 2035. More drivers than ever are choosing electric, and November saw another month of increased sales with EV’s accounting for one in four cars sold.”
Major carmakers, including Volkswagen, Renault, Mercedes-Benz and BMW, have argued in favour of the EU dropping the ban. They warn that consumers are not taking up EVs in the numbers anticipated when the 2035 date was approved in 2022.
NEW DELHI: The West Asia conflict is pushing govt to look at a faster transition towards renewable energy, including the possibility of increasing ethanol blending in petrol from 20-25%, although in a calibrated manner. This will come along with increased refining capacity within the country, so that there is a buffer in the system and greater domestic resilience, those familiar with the discussions said, pointing out that sustaining refineries at 100% capacity is not sustainable.While Barmer refinery has begun operations, expansion at Numaligarh is underway and work on integrated refineries on the west coast is also under focus. Apart from a mega refinery in Maharashtra, a new facility in Gujarat is also planned.Officials said rising use of renewables, biofuels and hydrogen in the energy mix was no longer just an environmental issue, but a strategic necessity in a situation like the present one, where the military conflict in West Asia has disrupted global energy supplies, triggering a supply crisis and a surge in oil and gas prices.According to officials, 20% ethanol blending has helped India save 4.5 crore barrels of crude annually and reduce foreign exchange outflow by around ₹1.5 lakh crore so far. Given the concerns over fuel efficiency and impact on vehicles, govt is expected to take a gradual approach that addresses the anxiety on ethanol blending. The third pillar on energy is expanding the strategic petroleum reserves.
Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse.
This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA).
The FCA has advised motor finance firms to prepare for the possibility that its redress scheme, which could see an average payout of £829, may not proceed.
The regulator stated that while a hearing date is unclear, these cases are unlikely to be heard before October.
In the meantime, it is in discussions about the “possibility of suspending some elements” of its compensation scheme, while still urging lenders to prepare for payouts.
But the regulator said it was also considering its options should parts of the scheme be quashed by the courts, including proceeding with a revised version or asking lenders to plan for a scenario where “there would be no scheme”.
This could mean lenders need to be ready to respond to complaints from car finance customers individually, rather than under the rules of an industry-wide programme set by the FCA.
“Many people will be frustrated that the legal action will delay payouts due to begin this year,” the FCA said.
“We remain committed to ensuring consumers receive any compensation owed as promptly as possible.”
The FCA set out the final details of its compensation scheme in March, which it estimated could cost the industry about £9.1 billion in total.
It had been expecting millions of claims to be paid out this year and the vast majority settled by the end of 2027.
The financial services arms of carmakers Volkswagen and Mercedes-Benz and the car finance arm of French bank Credit Agricole, as well as Consumer Voice, a group representing consumers, are asking the courts to quash the scheme, arguing the rules are unlawful.
“Between the four separate legal challenges, it is claimed in effect that the FCA’s approach to establishing the schemes has been both unduly favourable to consumers and unduly favourable to lenders,” the watchdog said.
At least one claim alleges that the FCA has breached the rights of lenders under the 1998 Human Rights Act, according to the watchdog.
Despite the uncertainty of the legal cases, the watchdog is still advising consumers to complain directly to their lender if they think they might be owed compensation, which they can do for free using a template letter on its website.
Business
Us Job Growth Data 2026: US adds stronger-than-expected 115,000 jobs in April despite Iran war impact – The Times of India
America’s employers added a stronger-than-expected 115,000 jobs in April despite economic uncertainty triggered by the Iran war, according to data released by the US labor department on Friday.The unemployment rate remained unchanged at 4.3 per cent, while hiring beat economists’ expectations of 65,000 new jobs, although it slowed from the revised 185,000 jobs added in March.The latest data suggests the US labour market has remained resilient even as the conflict in West Asia disrupted global oil supplies and pushed average US gasoline prices above $4.50 a gallon this week.“The labor market is not booming, but it is proving harder to break than many feared,” Olu Sonola, head of US economics at Fitch Ratings, said, as quoted by news agency AP.
Healthcare, transport sectors lead hiring
Healthcare companies added 37,000 jobs in April, while transportation and warehousing firms added 30,000 positions, according to the report.However, manufacturers cut 2,000 jobs during the month and have shed 66,000 jobs over the past year despite President Donald Trump’s protectionist trade policies aimed at boosting factory employment.Average hourly earnings rose 0.2 per cent from March and 3.6 per cent year-on-year, broadly aligning with the Federal Reserve’s inflation target.The labour force participation rate fell to 61.8 per cent, its lowest level since October 2021, as retirements and tighter immigration policies reduced the number of people seeking work.
Iran war and inflation concerns remain
Economists said the economy has so far weathered the impact of the Iran conflict better than expected, although risks remain if high energy prices persist.“Businesses to some extent are viewing the conflict in Iran as temporary,” Gus Faucher, chief economist at PNC, told AP. “We continue to see solid growth in consumer spending. And we’re seeing strong business investment, particularly around tech and AI.”However, Faucher warned that “the longer conflict in Iran lasts, the higher energy prices go, the longer they stay elevated the greater the drag on the economy.”The Iran war sharply disrupted shipping through the Strait of Hormuz after Iran closed the crucial route following US-Israeli strikes on February 28. The move caused oil prices to surge and raised fears of slower global economic growth.
Fed likely to hold rates steady
The stronger-than-expected jobs report is also expected to reduce pressure on the Federal Reserve to cut interest rates soon.Inflation climbed to 3.3 per cent in March, its highest level in two years, driven largely by rising fuel prices.Friday’s employment data “actually makes it less likely that we see a rate cut anytime soon,” Faucher said, adding that the Fed may prefer to focus on bringing inflation back towards its 2 per cent target before easing borrowing costs.
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25% ethanol blending in petrol likely in calibrated manner – The Times of India
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