Sir Keir Starmer is facing growing pressure to review Labour’s ban on the sale of new petrol and diesel cars by 2030, as automotive leaders warn the target is increasingly unrealistic amid mounting challenges across the sector.
Liam Butterworth, chief executive of Dowlais Group, one of the UK’s last remaining listed automotive engineering firms, said the government must consider relaxing the current 2030 deadline, describing the goal as “very difficult, if not impossible” to achieve.
Speaking to The Daily Telegraph, Butterworth urged the Prime Minister to recognise the disjointed global pace of electrification, and support a more gradual, hybrid-led transition that accounts for infrastructure constraints, supply chain issues, and waning consumer confidence in electric vehicles (EVs).
“Of course the future is electrification,” he said. “But there needs to be a longer tail. Hybrid technology is a more economically viable way to manage the transition. There’s no point in setting targets the industry can’t meet.”
The comments follow a turbulent period for UK car manufacturing, with output falling to its lowest level since 1952. The sector has been hit hard by EV hesitancy, inflationary pressures, regulatory confusion, and global supply chain disruptions.
Butterworth, who is stepping down following Dowlais’s $1.55 billion merger with US-based Axle & Manufacturing Holdings, said this was the most challenging period in his 30-year career.
“This is not a cycle — it’s a structural shift,” he said. “To survive, suppliers need serious scale.”
Dowlais, which manufactures drive trains used in both electric and combustion engine vehicles, supplies over 90% of the world’s largest carmakers. Yet its UK operations have steadily declined, with just one small plant remaining in Sutton Coldfield and fewer than 200 employees nationwide.
Factories have been relocated to continental Europe, and its UK customer base now consists solely of Jaguar Land Rover and Aston Martin.
“To have plants in the UK doesn’t make economic sense,” Butterworth said, citing lower customer volumes and better logistics overseas.
Butterworth highlighted the global fragmentation in EV adoption as a major headache for suppliers.
“China is full speed ahead. North America has gone in reverse. Europe is somewhere in the middle. The rest of the world will remain largely non-EV for years,” he said. “As a supplier, you’re caught in the middle.”
This patchwork transition adds complexity and cost for manufacturers trying to serve different markets with divergent regulations, incentives and consumer preferences.
In the UK, Dowlais reported £106 million in losses last year, and its share price has dropped over 40% in five years, reducing its market capitalisation to £922 million.
The merged business will be listed primarily on the New York Stock Exchange, with a secondary listing in London, reflecting the UK’s diminishing role in global automotive manufacturing.
Although the Labour government recently introduced a new £3,750 EV subsidy, industry leaders say uptake will depend on how quickly vehicles are approved for the grant and whether consumers understand which models qualify.
Butterworth said that uncertainty was hampering consumer confidence:
“A car is the second-largest purchase in a household. Inflation has made people cautious, and they don’t know whether to choose an EV, a hybrid, or a traditional engine. They’re waiting for clarity.”
He welcomed the direction of government support but insisted that infrastructure and affordability gaps remain too wide to hit the 2030 deadline.
“It’s not just about switching overnight. This industry has been built around combustion engines for decades. The transition takes time — and the public needs to be ready too.”
Butterworth added that the UK should not adopt stricter targets than the rest of Europe.
“The EU is talking about relaxing its 2035 deadline. There needs to be coordination. If we go harder and faster than our neighbours, we risk harming British industry.”
Once known as GKN Automotive, Dowlais is now emblematic of the challenges facing the UK’s once-thriving car sector. The company’s pivot abroad and its move to the US stock market reflect the broader decline of British manufacturing and the shift in automotive investment overseas.
Butterworth’s warning to Starmer is clear: without a rethink, the government risks setting unachievable targets that further erode competitiveness, damage investment, and weaken the UK’s standing in the global automotive industry.
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