BRUSSELS, June 20 (Reuters) – Post-Brexit rules forcing
European automakers to source more electric vehicle components
from Britain or the EU could cost them up to 4.3 billion euros
($4.7 billion) in tariffs and hit output, a leading industry
body said on Tuesday.
Under the EU-UK post-Brexit trade deal, electric vehicles
will 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 European Automobile Manufacturers’ Association (ACEA) on
Tuesday called for a three-year postponement of the rules,
arguing that time was needed to build up Europe’s battery
capacity. For now, automakers rely on battery cells and
materials imported from Asia.
It estimated that European manufacturers would have to pay
4.3 billion euros to the UK government in tariffs over three
years under the new rules. As Britain accounts for almost a
quarter of EU electric vehicle exports, this could cut EU
production by up to 480,000 units.
ACEA wrote to the European Commission earlier this month
asking for a review of rules of origin for batteries and to
agree a three-year postponement with Britain.
It said its members expected only 10% of electric vehicles
to comply with the new rules in 2024, making EU producers likely
to lose out to competitors from China and other third countries.
Stellantis warned last month that British car
plants could close without a swift renegotiation of the Brexit
deal.
The European Commission’s view is that the rules are
designed to support the development of a strong battery value
chain in the EU, and that Brexit had changed the trading
relationship with Britain.
Stefan Fuehring, a European Commission official overseeing
the post-Brexit EU-UK trade agreement, told a conference last
week that EU rules of origin were “fit for purpose” and that the
bloc was not considering changing them.
($1 = 0.9160 euros)
(Reporting by Philip Blenkinsop; Editing by Jan Harvey)
