European auto manufacturers urge delay of post-Brexit EV tariffs
Story by Investing.com •17h
In a significant move to protect the electric vehicle (EV) industry in Europe, the European Automobile Manufacturers’ Association (EAMA) has urged policymakers to delay the implementation of post-Brexit tariffs on EVs. The appeal was made on Sunday, ahead of a trade officials meeting scheduled for this week.
The association’s plea comes in response to concerns that the impending tariffs, set to be enforced between the UK and the EU from January, could lead to a substantial decline in regional production. The EAMA warns that these measures could potentially result in a production drop of up to 480,000 vehicles over the next three years.
The call by the auto lobby group underscores the potential impact of these tariffs on the sector. It emphasizes the need for careful consideration by the European Commission before implementing such measures, highlighting their potential to significantly disrupt the EV industry in Europe.
The EAMA’s plea is seen as a crucial step towards safeguarding Europe’s EV industry, which has been growing steadily in recent years. As negotiations continue, all eyes will be on the upcoming trade officials meeting this week, where these concerns are expected to be discussed in depth.
This article was generated with the support of AI and reviewed by an editor
EU car group calls for urgent action
Reuters •19h
(Reuters) – The European Union and Britain need to take urgent action to postpone rules for electric vehicles traded between the bloc and the UK that will trigger 10% tariffs, Europe’s car industry group said on Monday.
“Driving up consumer prices of European electric vehicles, at the very time when we need to fight for market share in the face of fierce international competition, is not the right move,” 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 EU-UK post-Brexit trade deal, EVs need to have 45% EU or UK content from 2024, with a 50%-60% requirement for their battery cells and packs, or face British or EU import tariffs of 10%.
The problem is that neither carmakers in Britain nor the EU have built up their EV supply chains sufficiently to meet those requirements and have called for the rules to be postponed until 2027.
Stellantis has said British car plants will close with the loss of thousands of jobs unless the Brexit deal is swiftly renegotiated, while Ford has said it will slow the transition to electric.
The ACEA has said the rules could cost carmakers up to 4.3 billion euros ($4.57 billion) in tariffs and hit output.
So far, the EU executive has been reluctant to renegotiate the deal.
In June, Stefan Fuehring, a European Commission official overseeing the post-Brexit EU-UK trade agreement, said the EU rules of origin were “fit for purpose” and that the bloc was not considering changing them.
(Reporting By Nick Carey; editing by Barbara Lewis)
Car makers face £3.7billion bill from draconian EU trade rules ahead of major law changes
Story by Felix Reeves GB news •8h
Industry experts are calling on the European Union to take action and remove plans that would place a 10 per cent tariff on electric car exports from Europe.
A number of manufacturing giants including Renault, BMW and Mercedes-Benz have urged the EU to “act now” and help protect the automotive industry across the continent.
Electric vehicle manufacturers could be hit with a massive £3.7billion bill over the next three years unless the EU drops restrictions between the bloc and the UK.
When goods are exported under the terms of EU free-trade agreements, they must comply with so-called “rules of origin”, with the standard rate on vehicles being either 40 or 45 per cent.
The UK is temporarily exempt from this rule after leaving the European Union, although this is due to end in January.
The original plan for the rules of origin was to ensure car companies build vehicles using parts sourced from the UK or the EU, or they could face a 10 per cent tariff.
The European Automobile Manufacturers Association (ACEA) has suggested that complying with these rules would be “practically impossible” with many relying on parts made in China and other nations.
From January 2024 until the end of 2026, ACEA highlights how there will be a “second transitional period” with significantly more restrictive rules.
This would have a huge impact on electric vehicle manufacturers, with all battery parts and certain battery materials needing to be produced in the EU or UK.
It has been forecast that the compliance rate for this will be around 10 per cent in 2024.
Factories may reduce production by up to 480,000 vehicles during the three-year period unless the rules of origin regulations are abandoned.
Luca de Meo, president of the ACEA and chief executive of Renault Group, urged the European Union to amend the rules to ensure the market remained competitive.
He said: “Driving up consumer prices of European electric vehicles, at the very time when we need to fight for market share in the face of fierce international competition, is not the right move – neither from a business nor an environmental perspective.
“We will effectively be handing a chunk of the market to global manufacturers.
“Europe should be supporting its industry in the net-zero transition as other regions do – not hindering it.”
Car makers across the UK and EU are now calling for the tariffs to be delayed for a further three years.
A gathering is set to take place later this week between the joint EU-UK Brexit specialised committees, with many hoping a breakthrough can be made to protect the industry.
However, Thierry Breton, EU Commissioner for the Internal Market, said the Brexit deal could not be re-opened “just to appease some sectors of the motor industry”, according to the Guardian.
GB News
It seems this subject is all over the news yet again. The question is will the EU step in after loud call from both sides and delay its introduction or will they go ahead with implementating the origin tariff, knowing by doing so it will add a 10% punitive tariff |on EU manufacrurers importing in to the UK, when the UK is still going ahead with the electric vehicle sales mandate from next year! Yes this will affect UK manufacturers importing into the EU but a damn site less given most EV’s are imported from the EU.
Elsewhere on this site EU vehicle manufacrturers are turning to to China to build their electric cars and then import them into Europe to keep costs down. VW was the latest manufacturer to announce this recently. So it looks like there is more to loose now than ever where Europen vehicle manufacturers are concerned, especially with electric vehicles.