Rishi Sunak talking to EU over threat to UK electric cars

Prime Minister Rishi Sunak is talking to the EU regarding a Brexit rule change that would impact the UK’s electric car ambitions. Carmakers in the UK and EU have requested a postponement of the rule change, as they the current deadline poses a threat to the UK industry.

Carmaking giant Stellantis has expressed concern about the future of its UK factories. The company had previously committed to manufacturing electric vans in the UK but now faces potential tariffs of 10% on exports to the EU due to rules on parts sourcing. 

As of next year, 45% of the value of an electric vehicle must originate in the UK or EU to qualify for tariff-free trade, with the percentage to increase in 2027. Stellantis – which owns Vauxhall, Peugeot, Citroen and Fiat, said rising costs of raw materials and energy are why the company cannot meet the “rules of origin.”  

The European Automobile Manufacturers Association, Europe’s car trade body, has also urged the EU to extend the deadline, citing concerns about the readiness of the supply chain.  Experts want the UK risks falling being in developing its own battery manufacturing industry, as significant investments are being made in other countries. 

PM Rishi Suank has acknowledged the car manufacturers’ concerns and stated that discussions are underway with the EU to address them.