![\"Keir](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/keir-starmer-and-rachel-reeves-at-a-jlr-plant-a-vauxhall-factory-and-an-eu-and-uk-flag.jpg\")
<\/p>\nThe UK’s leading automotive representative has slammed new plans from the European Union that “discriminate” against car manufacturers and could cost the UK billions of pounds.<\/p>\n
The European Union has introduced new “Made in EU” measures to protect companies and manufacturers on the continent, primarily against Chinese brands.<\/p>\n
The Industrial Accelerator Act will be launched to boost manufacturing, help businesses grow and create jobs across the continent over the coming years.<\/p>\n
It will involve the introduction of “targeted and proportionate” Made in EU or low-carbon requirements, which will apply to strategic sectors, like steel, cars and net zero technologies.<\/p>\n
The EU said this would be done to protect European capacities and boost demand for technologies and products made in Europe.<\/p>\n
It noted that manufacturing represented 14.3 per cent of EU GDP in 2024, although the IAA aims to increase this share to 20 per cent by 2035.<\/p>\n
Despite this, Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), criticised the measures, warning that they could adversely impact the UK’s production sector.<\/p>\n
He said: “The UK automotive sector is gravely concerned by today’s ‘Made in Europe’ proposals set out in the European Commission’s Industrial Accelerator Act.<\/p>\n
The UK’s leading automotive voice has slammed the EU for introducing new rules that could harm UK businesses <\/p>\n
| <\/p>\n
GETTY\/PA<\/p>\n
“As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost \u00a370 billion annually. <\/p>\n
“It is a position that the UK industry and government sought to avoid, given we are both each other’s largest customers and suppliers.”<\/p>\n
The EU said the IAA would introduce conditions to ensure foreign direct investments would bring value, including \u20ac100million (\u00a387million) for emerging sectors, such as electric vehicles and batteries.<\/p>\n
The Draghi Report, which was the basis for the IAA and Made in EU proposals, acknowledged the threat of Chinese manufacturers to clean technology and electric vehicles.<\/p>\n
![\"Stellantis](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/stellantis-luton-factory.jpg\")
The SMMT warned that UK car production could be massively impacted by the new EU rules<\/p>\n
| STELLANTIS<\/p>\n
It said this was down to a “powerful combination of massive industrial policy and subsidies, rapid innovation, control of raw materials and ability to produce at a continent-wide scale”.<\/p>\n
Despite this, Mr Hawes said UK manufacturers would be put at a “systemic competitive disadvantage” in the European market, given the eligibility criteria for EU27 members.<\/p>\n
The expert warned that the new conditions could even be a “breach” of the EU-UK Trade Cooperation Agreement, which is often referred to as the Brexit deal.<\/p>\n
Mr Hawes urged the European Union and the UK Government to work together to “resolve the situation” and ensure the UK gets “trusted partner status”.<\/p>\n
“This is not just to ensure choice for British and European consumers – especially in zero emission vehicles – but to deliver the economic growth and security everyone craves.”<\/p>\n
The European Union recently changed the rules around its upcoming petrol and diesel car ban, with increased emphasis on vehicles and batteries made in the EU.<\/p>\n
New rules state that carmakers will need to comply with a 90 per cent tailpipe emissions reduction target from 2035 onwards, with the remaining 10 per cent coming from low-carbon steel as part of the Made in EU scheme.<\/p>\n
Manufacturers will also benefit from “super credits” for small affordable electric cars made in the European Union, with these rules set to be confirmed before 2035.<\/p>\n","protected":false},"excerpt":{"rendered":"The UK’s leading automotive representative has slammed new plans from the European Union that “discriminate” against car manufacturers…\n","protected":false},"author":2,"featured_media":805617,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5226],"tags":[802,748,346,1305,2000,299,5187,1699,4884,528,388,12,285,16,3106,15,263],"class_list":{"0":"post-805616","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brexit","8":"tag-brexit","9":"tag-britain","10":"tag-cars","11":"tag-electric-vehicles","12":"tag-eu","13":"tag-europe","14":"tag-european","15":"tag-european-union","16":"tag-great-britain","17":"tag-labour-party","18":"tag-lifestyle","19":"tag-news","20":"tag-politics","21":"tag-uk","22":"tag-uk-politics","23":"tag-united-kingdom","24":"tag-world-news"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116176540392490619","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/805616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=805616"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/805616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/805617"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=805616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=805616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=805616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}