Britain's automotive industry is pushing for the European Union to amend its proposed Law on Accelerating Industrial Production in order to preserve an 80 billion euro ($94 billion) annual trade partnership that has flourished despite Brexit.
The Society of Motor Manufacturers and Traders said the exclusion of British—made cars from the EU's "Made in Europe" policy would harm manufacturers on both sides of the English Channel, disrupting supply chains and undermining the bloc's goals of increasing industrial competitiveness. The lobby group made the call during meetings with EU representatives in Brussels this week.
The UK remains the EU's largest export market for passenger cars, with a trade volume of 39.7 billion euros per year with European manufacturers. According to the SMMT, the EU also annually sells 9.1 billion euros worth of automotive components to the UK, more than to the United States or China.
"The importance of UK trade to the EU highlights why excluding UK industry from the "Made in Europe" policy proposed by the Industrial Acceleration Act (IAA) would cause significant damage on both sides of the channel, reducing production and demand in the supply chain, with implications for consumer choice and software availability. price," said Mike Hawes, Executive Director of the SMMT, on April 17.
.According to the current IAA proposals, UK automotive products will not be subject to benefits related to corporate fleet greening programs, which account for about 60% of the new car market in the EU. The policy also affects CO2 super credits, which provide financial support to companies implementing zero-emission vehicles.
The SMMT said that depriving the UK of access to these benefits would lead to a reduction in production, limit demand in the EU supply chain, and lead to a narrowing of consumer choice and rising prices. The organization warned that the move would damage the trade in battery-powered electric vehicles at a critical stage in Europe's transition to environmentally friendly mobility.
Since 2019, the volume of BEV electric vehicle trade between the EU and the UK has increased tenfold, with 61.6% of electric vehicles sold in the UK imported from EU factories. According to the SMMT, nine out of 10 electric vehicle models manufactured in the EU are eligible for the British Electric Vehicle Grant.
This week, the UK government published the final details of the UK's BICS industrial Competitiveness program, designed to
