French-Italian automotive group Stellantis has asked the British government to renegotiate the terms of its Brexit trade deal with the EU. It is the first time that a solicitation of this type has been made by a company. Stellantis, which also controls the British brand Vauxhall, sent the document to a House of Commons committee. According to the company if the cost of manufacturing electric vehicles in the UK “becomes uncompetitive and unaffordable, businesses will close”. At risk are the two plants that produce Vauxhall vehicles a Ellesmere Porton the north-west coast of England, and in Luton, near London which they occupy thousands of employees.
The group is therefore asking for an agreement with the EU on the extension of the current rules on provenance of automotive components until 2027 postponing for three years the change planned for 2024. Starting next year, in fact, on the basis of the scheme agreed upon when London left the EU, at least 45% of the parts value of an electric vehicle must be from UK or EU to avoid incurring in customs tariffs. If the policy is not met they will apply rates of 10% to cars manufactured in the United Kingdom and destined for the European market. To blow the parameter would be le vehicle batteries imported mainly from Asia. This would make production and exports uncompetitive with Japan and South Korea.
The government has tried to reassure that it intends to protect the national car market while the virtual meeting held today between the Minister of Industry and Commerce was “constructive” Kemi Badenoch and Stellantis executives. There is also talk of “cautious optimism” compared to availability from Brussels to deal with the problem. The Leader of the Labor Opposition, Keir Starmer, he has promised that if he wins the 2024 elections he will review the agreement with Brussels to create a closer relationship and break down trade barriers, without however having second thoughts about leaving the EU. And referring precisely to the Stellantis case, he promised: “We want to ensure that Vauxhall and many other companies not only survive in this country, ma prosperino”.