The European Union and the United Kingdom urgent measures must be taken to postpone the rules on electric vehicles traded between both markets, which will involve tariffs of 10%, the European automotive group declared on Monday.
“Increasing consumer prices for European electric vehicles, at a time when we have to fight for market share in the face of fierce international competition, is not the right decision”European Automobile Manufacturers Association (ACEA) president and Renault CEO Luca de Meo said in a statement ahead of a planned trade meeting between EU and UK officials this week.
Under the post-Brexit EU-UK trade deal, electric vehicles will have to have a Four. Five% EU or UK content from 2024, with a requirement of 50%-60% for cells and battery packs, or face UK or EU import tariffs from the 10%.
The problem is that neither British nor EU carmakers have sufficiently developed their electric vehicle supply chains to meet these requirements and have asked for the rules to be postponed until 2027.
Stellantis has claimed British car factories will close with the loss of thousands of jobs unless the Brexit deal is quickly renegotiated, while Ford has said it will slow the transition to electric.
The ACEA has said the rules could cost automakers up to 4.3 billion euros ($4.57 billion) in tariffs and affect production.
The EU executive has so far been reluctant to renegotiate the deal.
In June, Stefan Fuehring, a European Commission official overseeing the EU-UK trade deal after Brexit, said the EU’s rules of origin were “fit for purpose” and that the bloc was not considering changing them.
Source: Reuters
Source: Gestion
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