Automakers, the UK government, and industry lobbyists alike are banning together against the EU to delay Brexit-related manufacturing requirements that many are citing as too hasty and unachievable.
Under a trade agreement made during the Great British Break-Off of 2020, 45% of the value of an electric vehicle being sold in the European Union must come from Britain or the EU by 2024 or risk hefty tariffs.
Though car companies are working hard to meet the new requirements, many argue that the rushed timeline is not achievable, and are asking for a three year extension (until 2027) to allow the development of the domestic battery supply chain in Europe and the UK to catch with increasing demand.
A spokesperson from Stellantis said the rise in the cost of raw materials during the pandemic meant it was unable to meet the new “rules of origin.” It said the upcoming regulations could impart a 10% tariff on trade with the EU and make domestic production and exports uncompetitive. They also issued a warning that manufacturers like themselves may choose relocate rather than undercut their bottom-line.
Ford and Jaguar have joined Stellantis in criticizing the trade agreement, calling it "unrealistic and counterproductive" for electric car manufacturing. They worry that the tightened trade rules could undermine the shift to EV adoption, particularly penalizing manufacturers who have heavily invested in the transition while ICE vehicles would remain tariff-free.