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Lobby: UK's exclusion from EU's "Made in Europe" plan threatens British auto industry

A trade group said that Britain's exclusion of the European Union from its proposed "Made in Europe" provisions places the British automotive industry at a competitive disadvantage, and threatens to undermine the contribution it makes to the EU's economy.

The Society of Motor Manufacturers and Traders stated that the current draft would deny future British built vehicles incentives available for EU-built products. These include support for greener fleets, CO2 super credit, and support for corporate fleets.

This policy excludes British cars from EU member state procurement contracts, which means that public bodies in the EU are not allowed to award contracts for British vehicles.

The SMMT stated that the provisions showed the extent of interdependency between the EU and Britain in 'the automotive sector', at a time when the EU is debating the?Industrial Accelerator Act which aims to increase automotive manufacturing in Europe, while reducing dependence on China.

"Despite Brexit supply chains are deeply integrated, and cross-Channel trade is worth EUR80 billion a yearly," said SMMT CEO Mike?Hawes.

Hawes stated that excluding the UK from "Made in Europe", would be an "own goal" as it would weaken competitiveness and reduce scale, while limiting consumer choices.

The car lobby claimed that'such'regulations' put British production in a competitive disadvantage on its largest market. Britain is 'the EU's biggest export market for passenger vehicles and the EU Britains largest export markets for passenger cars.

SMMT stated that a fall in?demand for UK cars?would affect?the EU as the UK is EU's biggest customer for automotive parts.

(source: Reuters)