EU Car Industry Pushes for UK Inclusion in “Made in Europe” Rules

The IAA links EU procurement subsidies to a minimum share of EU-origin components, intended to protect the bloc from Chinese imports. Under the draft, UK-assembled cars would be excluded, prompting the European Automobile Manufacturers Association (ACEA) to call for “targeted exemptions” and leading Europe affairs minister Nick Thomas-Symonds to meet EU trade commissioner Maroš Šefcovic.

The Guardian

More than half of UK car exports go to the EU. ACEA members own UK factories: BMW (Mini), Volkswagen (Bentley) and Stellantis (Vauxhall). The EU-China trade imbalance runs at €1 billion (£860 million) per day and is projected to reach €400 billion in China’s favour by year-end.

The Guardian

ACEA argues that the integrated supply chain warrants equal status for UK-made vehicles under the IAA. EU officials stress that any amendment to the French-driven legislation will require President Emmanuel Macron’s backing. German Chancellor Friedrich Merz has promoted a “plaza accord” to curb Chinese competition. The UK government says it will seek “targeted exemptions” to safeguard its manufacturers.

The Guardian

UK industry leaders argue the draft would block UK-assembled vehicles from the majority of the European market, calling the outcome a major self-inflicted error. Nissan has reportedly warned that compliance could force the closure of its Sunderland plant. Critics also say that excluding existing ACEA-member factories would strand European investments and weaken competitiveness.

The Guardian

ACEA publicly calls for UK inclusion, while Nissan’s internal assessment of potential plant closures has not been confirmed in official statements. The draft does not disclose the precise percentage of EU-origin parts required for eligibility, leaving manufacturers uncertain about compliance pathways.

The Guardian

• “The European automotive industry operates a deeply integrated value chain with the UK, even post-Brexit. Vehicles, components and batteries made in the UK should therefore hold the same status as those made in the EU27 – with equal access to every policy instrument.” — ACEA

The Guardian

• “We trust European regulators will reflect this mutual interest in their final drafts,” — Mike Hawes, SMMT

The Guardian

• “effectively shut out UK-assembled vehicles from most of the European market” — Mike Hawes, SMMT

The Guardian

• “one of the most spectacular own goals in history” — Mike Hawes, SMMT

The Guardian

• “Excluding the existing factories of Acea members, for instance, would strand European investments and weaken our competitiveness at the worst possible moment.” — ACEA

The Guardian

• “so as not to strand investments made in good faith” — ACEA

The Straits Times

The UK and EU are slated to continue negotiations, with a follow-up meeting between Thomas-Symonds and Šefcovic expected in the coming weeks. The European Commission may revise the IAA thresholds before the next EU-China diplomatic round. Industry groups are preparing contingency plans should the final rules exclude the United Kingdom.

The Guardian