VAUXHALL28 Nov 2024 09:45
Stellantis, the car manufacturer that owns Vauxhall, Peugeot, Citroen, and Fiat, has warned that it could face tariffs of 10% on exports of electric cars to the European Union (EU):
Details
What's at stake
Stellantis says that the 10% tariffs could make it difficult to compete with cheaper models from Asia, and that it could be forced to close UK factories
Why the tariffs?
The tariffs are due to rules on where parts are sourced from. To qualify for trade without tariffs, 45% of the value of an electric car must originate in the UK or EU by next year, and this will increase to 65% in 2027
What Stellantis says
Stellantis says that it's unable to meet these rules due to rising costs of raw materials and energy. It also says that the UK must consider its trading arrangements with Europe to ensure the sustainability of its manufacturing plants
What the UK government says
The UK government says it's determined to ensure that UK car making remains competitive. A government spokesperson says that the Business and Trade Secretary has raised concerns with the EU and is determined to find a joint solution