New Brexit trade rules covering electric vehicles could cost European manufacturers £3.75bn over the next three years, an industry body has said. The rules are meant to ensure that EU-produced electric cars are largely made from locally sourced parts. But manufacturers on both sides of the Channel say they are not ready. The European Automobile Manufacturers Association (ACEA) also warned the measures could reduce output from EU factories by 480,000 vehicles with customers paying the price.
The main problem lies in so-called “rules of origin” which come into force in January. They apply to shipments of cars across the Channel under the terms of the Brexit deal, the UK-EU Trade and Cooperation Agreement. They will effectively ensure that electric vehicles will need to have batteries produced in either the UK or the EU. Cars that do not meet the criteria will face 10% tariffs – or taxes – when transported across the Channel, in either direction.
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