Thursday, May 18, 2023
Not so fit for purpose
The so-called rock solid Brexit deal Boris Johnson sold to voters in 2019 contiunues to come apart at the seams.
The Independent reports that Rishi Sunak’s government is understood to be lobbying the EU to delay a change in manufacturing rules in the Brexit trade deal after Vauxhall’s parent company warned it could shut its UK factories:
Stellantis said it will be unable to keep a commitment to make electric vehicles in the UK without changes to Boris Johnson’s Trade and Cooperation Agreement (TCA).
Business secretary Kemi Badenoch has raised the issue with her Brussels counterpart, and held a pre-arranged meeting with Stellantis chiefs on Wednesday.
She has also raised the motor industry’s concerns about the TCA with chancellor Jeremy Hunt and foreign secretary James Cleverly, according to Whitehall sources.
The government is lobbying the EU to delay a 2024 deadline for changes in how much an electric car should be manufactured in the UK.
It comes as Labour leader Sir Keir Starmer said “we need a better Brexit deal” with the EU to ensure firms such as Vauxhall can continue to operate in the UK.
Stellantis has called on the government to reach an agreement with the EU to maintain existing rules until 2027 – rather than 2024’s planned changes which state 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.
Without meeting the requirements, cars manufactured in the UK would be hit with a 10 per cent tariff, making domestic production and exports uncompetitive with cars built elsewhere.
Stellantis – the parent of Vauxhall, Citroen, Peugeot and Fiat, which employs more than 5,000 workers in the UK – committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.
But in a submission to an MPs’ inquiry, the company said the Brexit deal was a “threat to our export business and the sustainability of our UK manufacturing operations”.
It said the rise in the cost of raw materials meant it was “unable to meet these rules of origin”. Part of the problem is that a battery pack can account for up to half a new EV’s cost, with batteries heavy and expensive to move long distances.
I hate to say that we told them so, but...
The Independent reports that Rishi Sunak’s government is understood to be lobbying the EU to delay a change in manufacturing rules in the Brexit trade deal after Vauxhall’s parent company warned it could shut its UK factories:
Stellantis said it will be unable to keep a commitment to make electric vehicles in the UK without changes to Boris Johnson’s Trade and Cooperation Agreement (TCA).
Business secretary Kemi Badenoch has raised the issue with her Brussels counterpart, and held a pre-arranged meeting with Stellantis chiefs on Wednesday.
She has also raised the motor industry’s concerns about the TCA with chancellor Jeremy Hunt and foreign secretary James Cleverly, according to Whitehall sources.
The government is lobbying the EU to delay a 2024 deadline for changes in how much an electric car should be manufactured in the UK.
It comes as Labour leader Sir Keir Starmer said “we need a better Brexit deal” with the EU to ensure firms such as Vauxhall can continue to operate in the UK.
Stellantis has called on the government to reach an agreement with the EU to maintain existing rules until 2027 – rather than 2024’s planned changes which state 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.
Without meeting the requirements, cars manufactured in the UK would be hit with a 10 per cent tariff, making domestic production and exports uncompetitive with cars built elsewhere.
Stellantis – the parent of Vauxhall, Citroen, Peugeot and Fiat, which employs more than 5,000 workers in the UK – committed to making electric vehicles at its Ellesmere Port and Luton plants two years ago.
But in a submission to an MPs’ inquiry, the company said the Brexit deal was a “threat to our export business and the sustainability of our UK manufacturing operations”.
It said the rise in the cost of raw materials meant it was “unable to meet these rules of origin”. Part of the problem is that a battery pack can account for up to half a new EV’s cost, with batteries heavy and expensive to move long distances.
I hate to say that we told them so, but...
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Boris Johnson, fond of the big sweeping gesture, typically did not see all the implications of his decision to go green in 2030. His advisers should have done, though, given that the decision to leave the EU had already been made.
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