The British government is talking to European Union representatives about post-Brexit rules on car manufacturers. Indeed, producers are concerned about the profitability of their companies in view of impending export tariffs. Bloomberg reports.
According to British Prime Minister Rishi Sunak, several automakers have voiced their concerns. “Not just British carmakers, but also in the rest of Europe,” he said today in Japan, where he is attending the G7 summit. “We are currently in discussions with the European Union on how to address these concerns.”
In particular, automotive conglomerate Stellantis – which builds Vauxhall cars for the UK – appears to be affected by the new Brexit rules. Stellantis wants to convert the Ellesmere Port assembly line to the north so electric vans can be built there too, but says it cannot meet local requirements due to rising raw material prices and lack of battery stocks housekeepers.
45 percent domestic
The reason Stellantis is concerned is the UK rule that an electric car built there must be made of 45% British or European parts to avoid further 10% export tariffs. This makes it very difficult for 34 car manufacturers in the UK because they do not meet these requirements.
In a written statement, Stellantis asks if the rules can be deferred for three years. They are supported in this by the Japanese car brand Nissan, which also has several assembly sites in the UK. They are also afraid that prices will get too high. Sunak will speak with Nissan representatives today.
Source: BNR
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