The European Automobile Manufacturers Association (Acea) has called on the EU to grant the UK, Turkey and Morocco exemptions from new 'made in Europe' rules that threaten to exclude British manufacturers from their largest export market. The rules, drafted under the Industrial Accelerator Act (IAA), require cars and parts to be produced within the EU to qualify for subsidies or public procurement, aiming to protect the bloc's industry from cheap Chinese imports.
Acea, which represents major carmakers including BMW, Volkswagen and Stellantis, argued that the European automotive industry operates a deeply integrated value chain with the UK post-Brexit. It stated that vehicles, components and batteries made in the UK should hold the same status as those made in the EU27, with equal access to all policy instruments.
Mike Hawes, chief executive of the UK's Society of Motor Manufacturers and Traders (SMMT), warned that the rules would effectively shut out UK-assembled vehicles from most of the European market, calling it 'one of the most spectacular own goals in history'. He noted that many British plants are European-owned and that the UK and EU are each other's largest markets for cars and parts.
The IAA is seen as a key tool to curb Chinese imports, which have undercut European products. However, it risks damaging British manufacturers, with over half of UK car exports going to the EU. Britain's Europe affairs minister, Nick Thomas-Symonds, met EU trade commissioner Maroš Šefčovič on Wednesday to discuss the issue.
