Following the recent UK elections where David Cameron became prime minister, he and his Conservative party began looking for ways to slash spending. Among the programs on the chopping block are the £5,000 pound rebates for the purchase of electric vehicles. While the fate of the consumer tax breaks remains uncertain, Cameron has confirmed in parliament that a grant to Nissan for EV production will survive.
The previous administration, under Gordon Brown, had committed £20 million to Nissan to help pay for the retooling of the automaker's Sunderland assembly plant. The Sunderland plant is scheduled to start production of the Leaf in 2013 and battery packs in 2012. With the current government debt crisis in Europe, it's not clear if consumer incentives to promote sales of EVs will survive elsewhere in Europe.