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  • Writer's pictureBy The Financial District

Brexit Rules Could Cost Carmakers Billions, According To BBC News

Brexit trade rules related to electric vehicles (EVs) could potentially result in European manufacturers facing costs of £3.75 billion over the next three years, as reported by Theo Legget for BBC News.


The European Automobile Manufacturers Association (ACEA) has also raised concerns that these measures could lead to a reduction in output from EU factories by 480,000 vehicles and ultimately result in higher costs for customers. I Photo: Audi UK



These rules are designed to ensure that electric cars produced within the European Union (EU) consist predominantly of locally sourced components.


However, manufacturers on both sides of the English Channel have expressed their unpreparedness to comply with these rules.



The European Automobile Manufacturers Association (ACEA) has also raised concerns that these measures could lead to a reduction in output from EU factories by 480,000 vehicles and ultimately result in higher costs for customers.


The primary issue revolves around the implementation of "rules of origin," which are scheduled to take effect in January.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

These rules apply to car shipments crossing the Channel under the terms of the Brexit agreement, known as the UK-EU Trade and Cooperation Agreement. Essentially, they require that EVs have batteries manufactured either in the UK or the EU.


Vehicles that do not meet these criteria will be subject to 10% tariffs when transported across the Channel in either direction.




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