Vertu Motors Warns of Profit Shortfall Due to Electric Vehicle Mandate and Rising Costs

The UK car retailer cites government zero-emission vehicle targets and increased labor costs as key challenges impacting its financial performance.

Vertu Motors expects pre-tax profits for the year ending February 28, 2025, to fall significantly below the £34.5 million forecast by analysts.
The zero-emission vehicle (ZEV) mandate, requiring 28% of new car sales to be electric in 2025, has led to market disruptions and steep discounting by manufacturers.
The company is cutting costs by closing showrooms on Sundays, merging its brands under the Vertu name, and reducing its workforce through natural attrition.
Budget measures, including increased national insurance contributions and minimum wage hikes, are expected to raise Vertu's labor costs by £10 million in the next financial year.
Industry-wide concerns persist over the ZEV mandate's aggressive targets, with calls for government and industry collaboration to address market challenges and support economic growth.