The news came in a what SMMT characterized “as mixed week for the sector, with the start of next generation volume electric car production in Sunderland contrasting with the European Commission’s plans to tie new additional flexibilities on CO2 targets and public subsidies for the greening of corporate fleets to cars and vans ‘made in the EU.’ The proposal by the EU to permit a greater range of technologies beyond 2035 will put the UK out of step with its biggest market and biggest source of vehicles. We need to avoid unnecessary complexity and uncertainty for businesses considering investment decisions in the UK.

“The new EU automotive package is intended to ease the transition to low carbon products and strengthen the European automotive industry. The UK automotive industry, however, has cautioned that excluding like-minded trading partners – especially the UK, given it is the largest destination for EU finished vehicles, while the EU is the biggest buyer of British vehicle and parts exports – would be counterproductive, with damaging consequences across the Channel.

“The measures outlined so far risk raising costs and limiting choice for EU consumers, impacting supply chain resilience and undermining regional integration. Moreover, it will damage the mutually beneficial trading relationships that have been agreed over the past few years. Instead, the UK automotive industry is calling for the UK and EU to deepen their industrial partnership, maximizing the EU-UK Trade Cooperation Agreement (TCA), with UK-made automotive content to be included under any ‘Made in Europe’ definition to boost mutual competitiveness.,” SMMT said.