Nissan has reportedly warned the UK government that its Sunderland plant could close if the UK is excluded from new EU 'Made in Europe' manufacturing rules. The proposals, part of the Industrial Accelerator Act (IAA), would restrict public subsidies for electric vehicles to those assembled in the EU, potentially locking UK-made cars out of incentives.
The UK car industry lobby group, the Society of Motor Manufacturers and Traders (SMMT), expressed grave concern, stating the rules could damage the £70bn annual cross-channel trade. SMMT chief executive Mike Hawes said the proposals would 'effectively put UK manufacturers at a systemic competitive disadvantage' and may breach the EU-UK trade deal.
Nissan's Sunderland plant, Britain's largest car factory with 6,000 employees and capacity for 600,000 cars annually, is already operating below capacity due to lower demand. While Nissan declined to comment on the reports, a source indicated the company has concerns about rules on corporate fleets and small EVs.
The German car industry body VDA also raised concerns, warning protective measures could raise costs and trigger countermeasures. A European Commission spokesperson said the IAA is open to the UK for public procurement, but financial support for corporate vehicles would be limited to EU-made vehicles.
Business Secretary Peter Kyle visited Brussels last week to advocate for UK inclusion as a full partner. The UK government said it is engaging with the industry to address concerns. Both proposals require approval from EU member states and the European Parliament, with amendments expected.
