The newly-appointed chairman of BMW, Milan Nedeljković, has strongly criticised the European Union’s proposed ‘Made in Europe’ policy, labelling it “dangerous” and “not helpful”. The policy is part of the EU’s Industrial Accelerator Act, designed to rebuild Europe’s manufacturing base and accelerate the shift to a low-carbon economy.
The act proposes that only electric cars made in the EU should qualify for sales incentives and emissions credits, and would be the only vehicles eligible for purchase by EU member government corporate fleets. This could significantly impact BMW, which operates two large manufacturing plants in the UK: Mini Plant Oxford and BMW Group Plant Hams Hall.
Speaking at BMW’s Munich plant, which recently underwent a €650 million (£562 million) revamp to produce the new all-electric i3, Nedeljković said: “Our business model is based on global free trade. Currently, this fundamental economic concept is coming under pressure. We in Europe must be careful not to fall behind.” He added that the act focuses on ‘Made in Europe’ while neglecting the supply chains of European corporations operating globally, leading to less innovation, lower growth, and reduced prosperity.
Mike Hawes, CEO of the UK automotive trade body SMMT, expressed grave concern, stating that the proposals would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost £70 billion annually. He warned that strict EU assembly rules and eligibility criteria would put UK manufacturers at a systemic competitive disadvantage in the EU market.
