Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Business

Prime Minister Rishi Sunak hopes EU will waive electric car tariff

The UK is lobbying the EU over a Brexit trade deal deadline that carmakers have warned pose a threat to UK industry.

Prime Minister Rishi Sunak said the UK was “engaged in a dialogue” with the EU about a looming rule change that could affect UK electric car hopes.

Carmakers in Britain and the EU have been asking for the rule change to be pushed back.

Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, has said that its UK factories are at risk.

The company has previously committed to making electric vans in the UK, but now says these plans are under threat.

It has warned it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from.

From next year, 45% of the value of an electric vehicle should originate in the UK or EU to qualify for trade without tariffs. This percentage will rise again in 2027.

Stellantis said it was “now unable to meet these rules of origin” due to the recent surge in raw material and energy costs.

Europe’s car trade body, the European Automobile Manufacturers Association, has also asked the EU to extend the deadline, arguing that the supply chain is not ready.

Speaking to reporters on a trip to Japan, Mr Sunak the approaching deadline was “something that car manufacturers across Europe, not just in the UK, have raised as a concern”.

“And as a result of that we are engaged in a dialogue with the EU about how we might address those concerns when it comes to auto manufacturing more generally,” he added.

UK car giant warns Brexit may force factory closure

Mike Hawes, chief executive of UK trade body, the Society of Motor Manufacturers and Traders (SMMT), said he hoped “some degree of common sense would prevail”.

“It doesn’t need a full renegotiation of the Brexit deal, it just needs an agreement that you won’t impact some of the rules that were due to change next year.” he told the BBC’s Today programme

“It’s hard to see how you can make sure that your plant is competitive for the long term if you’re facing these additional costs. It undermines the investments either that have been made or potentially will be made.”

Industry experts have expressed concern that the UK is running out of time to develop its own battery manufacturing industry, given heavy investment being made in the US, China and the EU.

Mr Hawes said the UK had not missed the boat yet, “but the boat has got its engines fired up, ready to go”.

“What we’ve seen over the last few years is these massive investments being made in terms of gigafactories and indeed product allocation. That window isn’t shut, but it’s closing.”

Read more:
Prime Minister Rishi Sunak hopes EU will waive electric car tariff

    You May Also Like

    Business

    In the realm of luxury home and décor, few names resonate with as much prestige and elegance as Englanderline. As a leading luxury home...

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    Specialists in connecting brands to youth audiences Rocket are a marketing and content business that helps brands and organisations better understand and better engage...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved