Leaders from the UK Auto Industry ask for comprehensive political aid during their shift towards electric vehicles (EVs). Representatives of this industry, including top executives from DHL Supply Chain, Alexander Dennis, and Volvo Trucks, aired this appeal at the annual Society of Motor Manufacturers and Traders (SMMT) conference.
The looming threat of Rules of Origin tariffs, due to take effect six months from now following the UK-EU trade deal, alarms these leaders. They express concern about these tariffs compromising the competitiveness of UK-manufactured and supplied EVs on the global market.
Mike Hawes, SMMT’s CEO, stresses the urgency of crafting a UK response given the highly competitive investment landscape. Utilizing fiscal and regulatory policies can turn challenges into opportunities—benefiting the industry, job market, the environment, and the UK’s overall status.
Hawes sees a potential £106 billion prize as UK Battery Electric Vehicle (BEV) production is predicted to experience a ten-fold volume increase by 2030. He suggests pushing back the implementation of the rules of origin to 2027, providing the industry and its supply chain with some relief. Yet, this decision lies with Brussels.
The industry proposes five commitments: a green automotive transformation strategy, universal net-zero mobility, fostering green skills for a green future, making the supply chain a linchpin of the UK’s trade policy with tariff-free exports, and adopting measures to promote zero-emission vehicle production.
The United States’ recently introduced Inflation Reduction Act, with its ambitious targets and funding for promoting EV sales and regional lithium-ion battery production, fuels this call for action.
Despite this, Kemi Badenoch, Secretary of State for Business, Energy, and Industrial Strategy, insists the UK won’t blindly follow the US strategy. She assures that the government is contemplating the challenges and will establish a plan customized for the UK’s distinctive economic landscape.
As the automotive industry worldwide pivots to electric vehicles, the UK sector seeks robust, strategic governmental support to guarantee a seamless and efficient transition.
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