German carmakers call for post-Brexit rules to be delayed

Canada Global (Web News) Germany’s influential auto industry organisation is pleading with the EU and Britain to delay post-Brexit regulations that it claims would impede the switch to electric vehicles, perhaps strengthening the position of UK-based automakers who are also lobbying for the same thing.

In order to avoid tariffs starting in 2024, 45% of the value of an electric vehicle (EV) sold in the EU must originate from Britain or the EU, according to the trade agreement reached when Britain left the EU.

The issue is that a battery pack can cost up to 50% of the price of a new electric vehicle (EV), and Europe has not yet built up a significant enough battery sector, and it is unlikely to do so by the end of 2023, according to the VDA group.

Tariffs on both imports and exports to Britain would put the European auto industry at a “significant competitive disadvantage” compared to its Asian rivals in the crucial UK market, the report stated.

Additionally, they would be a “danger for the development of e-mobility” because they would harm the entire EU supply chain, including battery manufacturers, further lagging Europe as a production hub.

This would halt the shift, according to the lobbying group.

Stellantis (STLAM.MI), a car manufacturer, issued a warning earlier this week that if the problem was not resolved, British car manufacturing would close, resulting in the loss of thousands of jobs.

On Wednesday, Britain said that it was in contact with Brussels.

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