‘Most spectacular own goal in history’: new EU rules threaten to shut out UK car manufacturers

The Mini maker BMW is a member of the European Automobile Manufacturers Association. Photograph: Joe Giddens/PA View image in fullscreen The Mini maker BMW is a member of the European Automobile Manufacturers Association. Photograph: Joe Giddens/PA ‘Most spectacular own goal in history’: new EU rules threaten to shut out UK car manufacturers EU urged to make UK exempt from rules that risk becoming the most damaging consequence of Brexit yet The EU’s car industry has called for the UK to be fully included in new “Made in Europe” rules that threaten to shut out British manufacturers from their biggest export market. The European Automobile Manufacturers Association (Acea) on Wednesday urged Brussels to give the UK, Turkey and Morocco “justified, targeted exemptions” to the rules, which will require cars and parts to be made within the EU to qualify for subsidies or public procurement. The European Commission drafted the rules under the Industrial Accelerator Act (IAA) to try to protect the EU’s industry from China , whose cheap but heavily subsidised exports have undercut European products. However, the rules threaten to become the most damaging consequence of Brexit yet for British manufacturers because they apply to EU members only. Acea, which is seen as highly influential among European governments, said: “The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit. Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 – with equal access to every policy instrument.” The backing of the powerful lobby group will help the UK in negotiations with the EU to avoid damage . Britain’s Europe affairs minister, Nick Thomas-Symonds, was meeting the EU’s trade commissioner Maroš Šefčovič on Wednesday to discuss progress of UK-EU relations, with the IAA part of the agenda. Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), a UK lobby group, said he was pleased that the European industry’s position reflected “the integrated nature of our respective automotive sectors” and aligned with European suppliers’ hopes as well. “We trust European regulators will reflect this mutual interest in their final drafts,” he said. Hawes told a conference in London on Tuesday that the rules would “effectively shut out UK-assembled vehicles from most of the European market”. He argued that would be “one of the most spectacular own goals in history” because many of Britain’s plants are European-owned, while the UK and EU are each other’s largest markets for cars and parts. The Acea members BMW, Volkswagen and Stellantis respectively own the Mini, Bentley and Vauxhall factories in the UK, while JLR, Ford and Toyota are also part of the group and have big manufacturing operations in the UK. Nissan, another member, has reportedly argued privately that it would have to close its Sunderland factory if the rules go ahead. More than half of UK