Under the EU plans, electric cars must meet strict local requirements to qualify for subsidies. Rules will state that at least 70% of components need to be manufactured in the EU to qualify for subsidies. The idea was introduced to stop the threat of cheap competition from China which is proving a serious threat to Western brands.<\/p>\n
Mike Hawes, SMMT<\/a> Chief Executive, explained, “The UK automotive sector is gravely concerned by today\u2019s ‘Made in Europe’ proposals set out in the European Commission\u2019s Industrial Accelerator Act. As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost \u00a370 billion annually.<\/p>\n \u201cIt is a position that the UK industry and government sought to avoid, given we are both each other\u2019s largest customers and suppliers. However, the strict EU assembly rules and EU27 eligibility criteria currently proposed would effectively put UK manufacturers at a systemic competitive disadvantage in the EU market, a situation which may also be in breach of the EU-UK Trade Cooperation Agreement \u2013 the Brexit<\/a> deal.\u201d<\/p>\n \u201cWe will consider union-origin products that are manufactured in third countries with which we have an international commitment.”<\/p>\n *** Ensure our latest news headlines always appear at the top of your Google Search by making us a Preferred Source. <\/strong>Click here to activate<\/strong><\/a> or add us as Preferred Source in your Google search settings. ***<\/strong><\/p>\n It is understood that the European Commission has proposed extending the rule to cover some products coming in from certain trading partners. This could see the UK included in the scheme in a boost to UK industry<\/a> but would likely exclude China and the US.<\/p>\n