European automakers on Wednesday called for British vehicles and car parts to fall under the definition of “made in Europe” set out. This is part of the new rules aiming to bolster the bloc’s industries.
Britain currently risks being shut out of the scope of plans unveiled by Brussels in March tying companies’ access to public money to minimum thresholds for EU-made parts in their products.
“The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit.
“Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 with equal access to every policy instrument”.
The recommendation is one of a series of “important tweaks” the influential group, which represents BMW, Mercedes, and Stellantis among others, suggested the European Commission makes to its “Industrial Accelerator Act”, European car lobby ACEA said.
The legislation is a key part of a European Union drive to regain its competitive edge vis-a-vis China, and stave off job losses.
ACEA said that asides Britain, the geographical scope of “made in Europe” should be restricted to EU members as well as economic area partners Norway, Iceland, and Liechtenstein.
But exceptions should be made for European carmakers’ existing operations in Morocco and Turkey “so as not to strand investments made in good faith” under a previous legal framework, it added.
Under Brussels’ proposal any partner country that has deals with the EU allowing for European companies to access public money on a par with local firms would be brought into the fold.