SMMT warns EU rules could disadvantage UK-built cars

A proposed European Union industrial policy could disadvantage UK-built vehicles and put cross-Channel automotive supply chains at risk, the Society of Motor Manufacturers and Traders said, citing analysis that estimates UK automotive production supports €24 billion of economic activity and 250,000 jobs across the EU. The estimates come from Oxford Economics analysis commissioned by the SMMT. They describe economic activity and jobs currently supported by UK production, not losses that have occurred. The SMMT warns that the proposed Industrial Accelerator Act could reduce those benefits if its “Made in Europe” rules exclude British-built vehicles from certain incentives and public procurement. Under the draft provisions as described by the SMMT, UK-built vehicles could be denied measures including support for greener corporate fleets and CO2 super credits, as well as access to procurement by EU member states. The final provisions have not been established in the supplied reporting, and the potential consequences remain prospective. The analysis estimates that UK automotive exports to the EU generate €5.6 billion in spending across the bloc, supporting 58,000 jobs and €1.