UK and EU at Odds Over Post-Brexit Tariff on Electric Vehicle Parts
British Prime Minister Rishi Sunak has stated that European car manufacturers, including Stellantis, have expressed concerns that a post-Brexit tariff on car parts for electric vehicles could force them to quit the UK. The tariff, which is set to be implemented in January, would impose taxes on electric vehicles that do not meet certain production requirements within the EU or UK. Stellantis, which owns several major car brands, has stated that it would be unable to meet these rules of origin, citing increased raw material and energy costs.
Key Takeaways:
- European car manufacturers, including Stellantis, have expressed concerns over the impact of a post-Brexit tariff on electric vehicle parts.
- Stellantis has stated that it would be unable to meet the rules of origin for electric vehicles, citing increased raw material and energy costs.
- Prime Minister Rishi Sunak is engaged in a dialogue with the EU to address these concerns and has met with various stakeholders, including Nissan's CEO.
- Labour leader Sir Keir Starmer has called for a better Brexit deal to ensure that car manufacturers can continue to operate in the UK.
- Nissan's former CEO, Andy Palmer, has stated that it is impossible to meet local content rules unless battery sourcing is done within the UK or EU.
- The UK government has announced £18 billion in new investment into the country, which is expected to create jobs.
Statistics:
- 45%: the percentage of an electric vehicle's value that must be made within the EU or UK to avoid tariffs.
- 60%: the percentage of an electric vehicle's battery that must be made within the EU or UK to avoid tariffs.
- £18 billion: the amount of new investment announced by the UK government to support the automotive industry.
Sources:
- ITV, 2023, Rishi Sunak
- Whitehall sources, 2023, Kemi Badenoch and Jeremy Hunt
- Stellantis, 2023, Statement on Post-Brexit Tariff
- Nissan, 2023, Andy Palmer