New European Union car rules spark fury for ‘discriminating’ against UK

The SMMT has hit out at new proposals at from the European Commission which would “discriminate against UK”

New European Union rules have sparked fury – as UK carmakers accuse the bloc of “discriminating”. The SMMT has hit out at new proposals at from the European Commission which would “discriminate against UK-made vehicles and components”.

The EU has published the ‘Industrial Accelerator Act’ which states that publicly funded projects must prioritise EU-made products – especially in sectors like EVs and batteries.. But Mike Hawes, SMMT Chief Executive, said: “The UK automotive sector is gravely concerned by today’s “Made in Europe” proposals set out in the European Commission’s Industrial Accelerator Act.

“As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost £70bn annually.

“It is a position that the UK industry and government sought to avoid, given we are both each other’s largest customers and suppliers.”

The European Commission is planning to introduce sustainability, resilience, and minimum EU content requirements in procurement for strategic sectors, particularly targeting the automotive industry.

This includes setting European content thresholds for battery cells and components in electric vehicles, as well as mandating minimum levels of European-made steel. However, critics have said it could cause problems for global automotive supply chains and increase trade tensions with the US and China.

Mike said: “However, the strict EU assembly rules and EU27 eligibility criteria currently proposed would effectively put UK manufacturers at a systemic competitive disadvantage in the EU market, a situation which may also be in breach of the EU-UK Trade Cooperation Agreement – the Brexit deal.

“The UK government and European counterparts must work together urgently to resolve the situation, extending full, trusted partner status to the UK automotive sector.

“This is not just to ensure choice for British and European consumers – especially in zero emission vehicles – but to deliver the economic growth and security everyone craves.”