Ola Källenius, speaking as president of the European Automobile Manufacturers' Association, has warned that excluding Britain from the EU's planned Industrial Accelerator Act would amount to a deliberate attempt to damage the car industry. The legislation, also known as the Made in Europe law, aims to protect European manufacturers from outside competition, particularly from China, which currently enjoys a £1bn daily trade surplus with the bloc. Källenius said the move would "weaken the industry on both sides" and make no economic sense.
Political leaders are hoping to reach agreement on the act before December, with discussions potentially leaving UK car makers out of key contracts. Prime Minister Andy Burnham is pushing for British inclusion and plans to raise the issue at a UK-EU summit scheduled for 20 November, though France is reportedly resistant. The UK business secretary, Jonathan Reynolds, has ruled out imposing tariffs on Chinese vehicles as a way to strengthen Britain's case for inclusion.
The car industry is also facing pressure from separate tariff plans. Under post-Brexit trade rules, a 10% tariff on electric vehicle exports between the UK and EU is scheduled to begin next year. Originally due in 2024, this was suspended for three years to give manufacturers time to develop battery production capacity. The industry is now calling for an urgent two- or three-year extension, with the ACEA's international trade director warning that all manufacturers are "very anxious" with the deadline approaching in less than three months.