EU carmakers urge Von der Leyen to hold off post-Brexit tariffs on electric powered motor vehicles | Automotive industry

The bosses of Europe’s premier carmakers have urged the president of the European Commission to postpone the “cliff-edge” introduction of put up-Brexit tariffs they say will harm EU electric powered motor vehicle manufacturing.

Renault, Mercedes-Benz, Volvo and Ferrari were being amongst the 13 big suppliers who wrote on Tuesday to Ursula von der Leyen inquiring for a delay to “rules of origin” that are scheduled to arrive into power on 1 January.

The motor vehicle industries on both equally sides of the Channel have united in contacting for the deadline to be delayed by a few decades till the close of 2026, to steer clear of 10% tariffs becoming imposed overnight.

The carmakers also involved Toyota, Ford and Jaguar Land Rover, all of which have factories in Britain, plus BMW and Volkswagen, which possess Rolls-Royce and Bentley in the United kingdom.

They have received the robust backing of the British isles authorities, which wishes to steer clear of any destructive impacts from Brexit. On the other hand, senior EU officials have claimed they do not feel the negotiated offer should really be reopened to appease the car marketplace.

The United kingdom and EU agreed a hurried Brexit offer on Christmas Eve 2020, to the reduction of carmakers and many other industries. On the other hand, the offer also involved principles to pressure carmakers to source batteries from the EU. Exported autos among the Uk and EU will be subject to 10% tariffs if they do not resource batteries from inside of Europe.

About 90% of electric powered autos exported from the EU to the Uk, and vice versa, would be impacted but petrol and diesel cars would not – to the chagrin of environmental campaigners.

The rules are a problem because China, South Korea and Japan dominate the global battery manufacturing marketplace. The carmakers believe that tariffs on European autos will assistance Chinese companies, which are hoping to gain a larger share of Europe’s current market – a change that could threaten jobs in Europe.

The tariffs “would have a direct impact on the competitiveness of EU electric vehicle manufacturing by minimizing our share in Europe’s amount 1 EV export market”, the carmakers wrote, referring to the United kingdom.

The vehicle bosses said the regulations of origin were “unachievable” and would “have considerable immediate repercussions in phrases of a opportunity loss of EV production output in Europe”.

skip previous e-newsletter advertising