European carmarkers seek support to UK concessions

The EU’s auto car manufacturing lobbies are pushing Chief Negotiator Michel Barnier to open up to the possibility of some concessions to the UK with regard to rules governing the trade in electric cars.

Of particular interest to EU-based companies are rules on how much content in a finished car should be produced locally in either the U.K. or EU to allow cars to be sold tariff-free between countries.

According to Politico, parts of the Commission’s current negotiating position “do not work for any motor vehicle manufacturer,” according to ACEA, a collective organisation which brings together some sixteen European car manufacturers.

Around 80% of cars produced in the UK are exported, with half ending up in the European Union. The major issue revolves round the fact that most battery cells are produced in Asian countries. While Britain wants an allowance that up to 70% of parts for electric cars can come from outside the EU and still qualify for free-trade, the Commission insisted on a 45% limit.

via Politico