BERLIN, May 18 (Reuters) – The powerful German auto industry association is urging the European Union and Britain to delay post-Brexit rules they say would hamper the transition to electric vehicles.
Under the trade deal agreed when Britain left the EU, from 2024, 45% of the value of an electric vehicle (EV) sold in the EU must come from Britain or the EU to avoid tariffs.
The problem is that a battery pack can be up to half the cost of a new electric car and Europe hasn’t yet developed a large enough battery industry of its own – and is unlikely to do so by the end of 2023, the VDA said. union in a position.
Tariffs on both exports to Britain and imports from Britain would be “a significant competitive disadvantage for the European car industry vis-à-vis its Asian competitors in the all-important UK market,” it said.
They would also “danger the development of e-mobility” as they would harm the entire EU supply chain, including battery manufacturers, leaving Europe further behind as a manufacturing site.
“This would slow down the transformation,” the lobby group said.
Earlier this week, carmaker Stellantis (STLAM.MI) warned that UK car factories would close with the loss of thousands of jobs if the problem was not addressed.
Britain said on Wednesday it was in talks with Brussels.
“We hope to find a solution with the EU on this,” Prime Minister Rishi Sunak’s spokesman told reporters on Wednesday.
Reporting by Christoph Steitz Writing by Sarah Marsh Editing by Mark Potter