​Three major car manufacturers are asking the UK government to review the Brexit deal as it currently stands, which could put UK-made cars at a serious disadvantage for exports. One company says it will close two British plants if the deal is not changed.

Stellantis, Ford and Jaguar Land Rover are three major car companies calling for a renegotiation of Brexit trade deals, while Stellantis, a group that includes brands such as Peugeot, Fiat and Opel, has warned it could close UK factories because it will become inactive. – the competitiveness of this activity, if the rules for quotas of components remain unchanged.

The concern is over so-called ‘rules of origin’, which deal with where the various components of cars assembled in the UK come from. These rules will become increasingly strict until 2027, and if manufacturers fail to comply, export taxes will be applied, leading to higher prices for these cars in continental Europe.

Eight out of ten cars made in the UK are exported, and the car industry has fought to keep those cars out of the 10% customs duty. This is not the case at the moment, but new rules coming into effect soon will require 40% of the cost of parts in a UK-made vehicle to come from the UK and the EU, with the rules getting tougher, rising to 55% in 2027.

In 2027, the rules for electric cars will become even stricter and will mainly apply to the most expensive part of the car: the battery. These regulations are a problem because battery production in the EU and UK cannot grow enough to no longer depend on China.

It must be said that the heaviest batteries for electric cars weigh more than 600 kg, and transporting them from China is difficult and expensive.

First of all, Stellantis is urgently asking the British government to review the Brexit trade deals, which is not an easy task for politicians in London.

Sources: CNN, BBC, Le Monde