EU carmakers want UK included in ‘Made in Europe’ rules

European automakers called Wednesday for British vehicles and car parts to fall under the definition of “made in Europe” set out by new rules aiming to bolster the bloc’s industries.

Britain currently risks being shut out of the scope of plans unveiled by Brussels in March tying companies’ access to public money to minimum thresholds for EU-made parts in their products.

“The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit,” European car lobby ACEA said.

“Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 — with equal access to every policy instrument”.

The recommendation is one of a series of “important tweaks” the influential group, which represents BMW, Mercedes, and Stellantis among others, suggested the European Commission makes to its “Industrial Accelerator Act”.

A landmark proposal broadly aiming to ensure that public and foreign investments support manufacturing inside the 27-nation bloc, the legislation is a key part of a European Union drive to regain its competitive edge vis-a-vis China, and stave off job losses.

ACEA said that besides Britain, the geographical scope of “made in Europe” should be restricted to EU members as well as economic area partners Norway, Iceland, and Liechtenstein.

But exceptions should be made for European carmakers’ existing operations in Morocco and Turkey “so as not to strand investments made in good faith” under a previous legal framework, it added.

Under Brussels’ proposal any partner country that has deals with the EU allowing for European companies to access public money on a par with local firms would be brought into the fold.

ACEA also called for incentives to compensate firms for the higher costs of localising production in Europe and for research and development and other intangible values to be counted alongside vehicle parts towards “made in Europe” thresholds.

By Agencies