The plant is among a clutch of factories set to emerge in northern France under President Macron’s “reindustrialisation” plan for the country.īMW this year announced it would invest £600m, including a £75m injection from the British taxpayer, to build the next generation of Minis at a plant in Oxford. On Thursday, French startup Verkor said it has raised more than €2bn to build a gigafactory for electric car batteries. These rules of origin aim to support the EU’s strategic objective to develop a strong and resilient battery value chain in the EU.”įrench President Emmanuel Macron has staked major political capital on transforming his country into a hub for electric vehicle production. This includes clear terms for rules of origin for cars and other products traded under the terms of the TCA. “The Trade and Cooperation Agreement is the outcome of a negotiation in which both sides agreed to an overall balance of commitments. European carmakers ‘could lose €4.3bn’Įuropean carmakers have warned that they stand to lose €4.3bn (£3.69bn) and cut production by some 500,000 electric vehicles unless Brussels agrees to delay the implementation of tariffs.īut a Commission spokesman said: “Brexit has changed the trade relationship between the UK and the EU, among other things. manufacturers in Europe as well,” the minister told the House of Commons Business and Trade Committee. “There will be impact on not just the UK car industry but also.

She said the introduction of trade tariffs would open the door to “cheaper imports, potentially Chinese-made cars” to fill the gaps in EU and UK markets. Industry Minister Nus Ghani earlier this week warned China would be the “biggest beneficiary” if the EU and UK cannot reach a deal on tariffs. “We have no economic interest in extending the deadline.”ĭespite the French blockage, British officials are hopeful the date will be extended beyond the end of the year. But the outcome will give an indication of how we envisage future relations with the British. The French source added: “So far, no decision has been made. They’ve complained that Brussels has failed to listen to warnings from both UK and European carmakers, which have said failing to delay the rules could prove to be extremely costly for the industry. Prime Minister Rishi Sunak has personally lobbied Mrs von der Leyen in recent private discussions between the pair to relax the bloc’s hardline stance.Īnd British officials have expressed “extreme frustration” over the lack of progress they’ve had with their European counterparts, according to a source familiar with the discussions. The French position is to say no to the British because it is a question of sovereignty as we want to create a European battery industry and flooding the French market with Chinese batteries would stop it from happening.” PM has lobbied Mrs Von der Leyen “The British want an extension to the deadline until 2027 to continue flooding the EU market with Chinese batteries and thus become a hub in the process,” the French source told The Telegraph. Under the so-called “rules of origin” requirement, electric vehicles shipped from Britain to the bloc must have 60 per cent of their battery and 45 per cent of their parts by value sourced from either the EU or UK.Īfter the end of the year, electric vehicles traded across the Channel that don’t meet this criteria will be slapped with a 10 per cent trade levy, despite Britain’s zero-tariff, zero-quota trade deal with Brussels.įrench ministers have pushed for the Commission to stick by the plans to impose tariffs from next year amid an effort to make the bloc less reliant on the likes of China and the United States. Britain is asking the EU to push back the implementation of post-Brexit trade rules that are due to enter into force at the end of the year until 2027.

Uk net exporter of cars