After the referendum on leaving the European Union in 2016 (Brexit), the British car industry was greatly weakened. Car production, which at the time was 1.7 million units per year, has since declined. Today, 750,000 cars leave the country’s chains every year. True, because of this, the health care crisis passed, and then there was a shortage of semiconductors.

But there were also trips, for example, Fr Honda, which has had a plant in Swindon since 1985. An appearance favored at the time by Margaret Thatcher, who initiated the opening of the market to Japanese manufacturers (Nissan led at Sunderland in 1984, Toyota would follow at Burnaston in 1989). The withdrawal is not related to Brexit, say Honda. But who was captivated by grace EU-Japan Free Trade Agreement ratified in 2018. This is aimed at to gradually reduce taxes on the import of Japanese cars, established at that time in the amount of 10%. Nissan and Toyota have not reported a similar departure.

Tougher rules in 2024

From now on, the coup can be carried out strengthening of the Rules of Origin, planned for 2024. They were ratified in 2020 between the United Kingdom and the EU and come into force on 1^Er January 2021. In particular, they regulate imports and exports goods between the two regions. All is well in the country so far, but the rules are about to change. The Commission will indeed demand at least this next year 45% of the cost of vehicle parts come from the European Union or the United Kingdom for the purpose of exemption from taxes and customs quotas. Easier said than done in the context of exploding commodity prices and general inflation. Some manufacturers, and this is the case of Stellantis, cringe at this…

Stellantis seeks a compromise

The group has two factories in the country. Port Ellesmerewhich should soon produce small electric combi groups. Combo-e, e-Partner, e-Berlingo. But also Luton which produces utilities of the premium segment. Vivaro, Scudo, Jumpy/Dispatch and Expert. Initially, the group believed that it would be able to fulfill its obligations and reach the 45% threshold. But “prices for non-originating (EU or UK) raw materials are rising dramatically, so we are currently unable to meet these rules of origin,” the group said. The European Union is asking about it transfer of this rule to 2027, the time needed to reorganize activities and, who knows, hope for an improvement in the economic situation. and how about the account Jaguar Land Rover, BMW, Nissan and Toyota who also manufactures locally? Now the situation is more than uncertain.