The UK is lobbying the EU over a Brexit business deal deadline that carmakers have alerted poses a threat to UK firms.

Prime Minister Rishi Sunak stated the UK was “engaged in a talk” with the EU regarding a coming rule change that could impact UK electric vehicle hopes.

Car companies in Britain and the EU have requested that the rule change be pushed back. Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, has said its plants are at stake.

The business has previously committed to making electric vehicles in the UK but now says these projects are in danger. It has cautioned it could face taxes of 10% on exports to the EU due to restrictions on where parts are sourced from.

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From next year, 45% of the worth of an electric car should form in the UK or EU to prepare for the trade without taxes. This percentage will increase again in 2027. Stellantis said it was “now unable to complete these rules of source” due to the recent increase in raw material and energy prices.

Europe’s vehicle trade body, the European Automobile Manufacturers Association, has even requested the EU to extend the deadline, claiming that the supply chain still needs to be prepared.

Speaking to journalists on a tour to Japan, Mr Sunak said the impending deadline was “something that car makers across Europe, not only in the UK, have raised as a problem”.

“And as a consequence, we are engaged in a conversation with the EU regarding how we might handle those concerns regarding auto manufacturing more generally,” he continued.

Source – BBC