Thursday 18 May 2023

Sunak speaks to EU over EV Brexit row

Prime Minister Rishi Sunak has responded to carmakers’ calls for a change on Brexit rules, to keep the UK’s electric vehicle (EV) industry strong.

“We are engaged in a dialogue with the EU,” Mr Sunak said, after car giant Stellantis – which owns Peugeot, Vauxhall and other large brands – said it can no longer meet the requirements of the rules of origin.

A rule change is set to take place, which will require 45% of the value of an EV to be from either the UK or the EU – but this will rise to 65% in 2027.

Stellantis is pushing for rules to remain the same until 2027 or else “operations will close.”

This is due to the cost of parts following the energy crisis and Ukraine War.

Rishi Sunak accepted this is “something that car manufacturers across Europe, not just in the UK, have raised as a concern.”

“As a result of that we are engaged in a dialogue with the EU about how we might address those concerns when it comes to auto manufacturing more generally,” he said.