The European Union’s new ‘Made in Europe’ policy poses significant risks to the UK automotive sector, potentially jeopardising a £68 billion trading relationship. As the EU excludes the UK from certain incentives aimed at promoting EU-made vehicles, UK manufacturers may face competitive disadvantages that could lead to substantial financial losses within months.
The Society of Motor Manufacturers and Traders (SMMT) has highlighted the deep integration of UK and EU automotive industries, with the UK exporting vehicles worth £4.8 billion annually and supporting 58,000 jobs across Europe. The exclusion from EU regulations could hinder the UK’s ability to compete, particularly in the growing electric vehicle market, where incentives for cleaner fleets are crucial.
Mike Hawes, SMMT’s chief executive, warns that excluding the UK from the ‘Made in Europe’ provisions could weaken the competitiveness of both UK and EU automotive sectors. This could lead to reduced scale and limited consumer choice, undermining the collaborative efforts needed to strengthen Europe’s automotive ecosystem.
As the EU intensifies discussions on the Industrial Accelerator Act, the UK government is urged to engage proactively with EU counterparts to ensure that the automotive sector remains a trusted partner. The outcome of these negotiations will significantly impact jobs, growth, and investment in the UK auto industry.
Source: GB News
