Electric car rules could cost carmakers billions
New post-Brexit trade rules might cost European electric car makers – around £3.75 billion over the next three years, says The European Automobile Manufacturers Association (ACEA) which represents the car industry.
These rules say that most parts of electric cars made in the EU should come from nearby. But companies on both sides of the Channel feel they’re not ready for this change. This could also mean making fewer cars in EU factories, about 480,000 less, and customers might end up paying more. The problem is mainly with the new “rules of origin” starting in January.
They say electric cars must have batteries made in either the UK or the EU. If the cars don’t meet these rules, they’ll face 10% extra charges when sent across the Channel, in either direction.
These rules were made to protect the European car industry from getting cheaper parts from other places.
But since making batteries in Europe hasn’t speeded up as planned, car companies are struggling to follow these new rules. It’s a big issue for European car makers because the UK is their largest market for selling cars – last year, 1.2 million cars went to the UK.
Also, more cars built in the UK are sent to the EU than any other place.
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