Wednesday, June 28, 2023
Brexit threatening electric car production
The Independent reports on the warning of one auto-industry chief that there is a post-Brexit “cliff edge” looming in January 2024 that threatens the growth of Britain’s electric car production.
The paper says that the Society of Motor Manufacturers and Traders (SMMT) has said that the future of the UK’s industry is a stake unless a deal was struck with the EU to delay new tariff rules until 2027:
Among the final parts of the Brexit deal agreed by Boris Johnson, changes set to come into force in 2024 state 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.
Calling for a three-year delay, SMMT chief executive Mike Hawes said on Tuesday: “There is huge potential for growth, and that growth is now at risk from tariffs.”
Mr Hawes told his organisation’s annual conference: “We’re saying basically suspend that requirement, and just let the regulation that’s currently in place flow through to 2027, which is the next threshold.”
He added: “We need to make sure those [tariffs] aren’t applied … We can’t afford to have a last minute, 31 December agreement, because business needs to plan its volumes.”
Yet another Brexit disaster for the UK economy looms.
The paper says that the Society of Motor Manufacturers and Traders (SMMT) has said that the future of the UK’s industry is a stake unless a deal was struck with the EU to delay new tariff rules until 2027:
Among the final parts of the Brexit deal agreed by Boris Johnson, changes set to come into force in 2024 state 45 per cent of an electric car’s value should originate in the UK or EU to qualify for trade without tariffs.
Calling for a three-year delay, SMMT chief executive Mike Hawes said on Tuesday: “There is huge potential for growth, and that growth is now at risk from tariffs.”
Mr Hawes told his organisation’s annual conference: “We’re saying basically suspend that requirement, and just let the regulation that’s currently in place flow through to 2027, which is the next threshold.”
He added: “We need to make sure those [tariffs] aren’t applied … We can’t afford to have a last minute, 31 December agreement, because business needs to plan its volumes.”
Yet another Brexit disaster for the UK economy looms.
