LONDON — The European Automobile Manufacturers Association (Acea) has urged the European Commission to grant exemptions to new vehicle sourcing rules for the United Kingdom, Turkey, and Morocco. These rules, drafted under the Industrial Accelerator Act, would require cars and components to be manufactured within the European Union to qualify for subsidies and public procurement.
The stated purpose of the Industrial Accelerator Act is to protect E.U. industry from Chinese exports, and its provisions apply only to E.U. members. The association said that integrating the U.K. automotive industry with the E.U. value chain is critical. "The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit." It added, "Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 – with equal access to every policy instrument."
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), spoke at a conference in London. Hawes stated that if implemented, the rules would impact trade. "The rules would effectively shut out UK-assembled vehicles from most of the European market." He also said, "We trust European regulators will reflect this mutual interest in their final drafts."
Many members of the association operate manufacturing facilities in the U.K. These include BMW, which owns the Mini factory; Volkswagen, which owns the Bentley factory; and Stellantis, which owns the Vauxhall factory. Other members with U.K. manufacturing operations include Jaguar Land Rover, Ford, Toyota, and Nissan, which has a factory in Sunderland. More than half of the U.K.'s car exports are sent to the E.U.
Nick Thomas-Symonds, the U.K. minister for Europe affairs, met with E.U. trade commissioner Maroš Šefčovič to discuss U.K.-E.U. relations. The Industrial Accelerator Act was an item on the agenda for this meeting.
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