![]() “Manufacturers will not continue to invest and relocate manufacturing operations outside the UK. “If the cost of EV manufacturing in the UK becomes uncompetitive and unsustainable, operations will close,” it argues in its submission to a House of Commons inquiry into electric car production. Stellantis says it will have no choice but to wind down operations, putting thousands of jobs at risk. Photograph: Rebecca Cook/Reuters What is at stake if the TCA is not renegotiated? Stellantis employs more than 5,000 people in the UK. Stellantis, which employs more than 5,000 people in the UK, including 1,000 at its electric van factory in Ellesmere Port, Cheshire, and 1,200 at its Luton plant, says these requirements make production in the UK unviable, and it is calling on the government to strike a fresh agreement with the EU to maintain existing rules until 2027.įord, which has invested £380m growing its e-motor capacity at its plant in Halewood, Merseyside, also issued a statement on Wednesday calling for the three-year delay to the rule change while the UK and EU improve their battery production capacity. This threshold is due to rise to 45% next year and then in 2027 it will increase to 55% and the battery pack will have to come from the UK or EU.Ĭarmakers who do not comply face paying tariffs of 10% when they come to sell their finished vehicles on the other side of the Channel, making it harder for them to compete with cheaper rival models from east Asia. Stellantis, which also owns the Citroën, Peugeot and Fiat, DS, Jeep, Alfa Romeo, Maserati and Abarth brands, says it is struggling to meet the TCA’s “rules of origin” that require 40% of an electric vehicle’s parts by value to originate in the UK or EU in order for it to qualify for trade without tariffs. ![]() The trade and cooperation agreement (TCA) between London and Brussels was signed in 2020, so why is it suddenly an issue? What is the problem?
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