3 of the world’s largest automakers are considering leaving the UK in case the British government is unable to meet their demands.
Ford, Stelantis, and Jaguar & Land Rover have asked the British government to renegotiate its Brexit deal, with the aim of changing rules which would threaten the production of electric vehicles in the UK.
Without the changes, it will be difficult to meet the UK’s EV commitments. Stellantis warned.
Stellantis warned that it would not be able to maintain its commitments to manufacture « electric vehicles » in Britain without the required changes.
Ford described those rules as imposing a « pointless cost ».
Jaguar & Land Rover, the largest automaker in The UK, said the timing of the new rules was « unrealistic. »
Those rules impose the Trade and Cooperation Agreement between London and Brussels, signed in 2020. Stellantis is struggling to meet the agreement’s « rules of origin », which require 40% of parts of an electric vehicle to have local content from the UK or EU to qualify for trade « without tariffs. »
Stellantis owns several famous labels (Citroën, Peugeot, Fiat, DS, Jeep, Alfa Romeo, Maserati, and Abarth).
The crisis exploded sharply this year, although the agreement was signed in 2020- with the stipulated 40% rising to 45% in 2024 and 55% in 2027, with the battery pack coming from the UK or EU.
The rules threaten manufacturers to stop investment and move manufacturing operations out of the UK. That closure, in turn, would create significant job losses, the loss of a skilled workforce, and a negative impact on the UK’s economy. According to British media reports.
Stellantis frankly said if manufacturing EV in theUK is no longer competitive or stable, the company will have to halt operations there.
In the company’s view, « the stated requirements render production in the UK inapplicable. » It notes that it will have no choice but to end operations, putting thousands of jobs at risk, according to a report in the Guardian.