Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Car industry calls for Brexit consideration
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Car industry calls for Brexit consideration

Date: 19 March 2018   |   Author: Sean Keywood

European carmakers have called for their needs to be taken into account during Brexit negotiations. 

Ahead of an EU summit where heads of state are set to approve the European Council's Brexit guidelines, the European Automobile Manufacturers' Association (ACEA) says negotiators should pay urgent attention to sector-specific issues that have potentially disastrous implications for the entire automotive supply chain.

A big concern for the industry is whether cars approved by UK authorities will still be able to be sold in the EU after Brexit, and vice versa.

EU law requires that cars are tested by a national technical service to verify compliance with EU environmental, safety and security standards, before they can be put on the market anywhere in the EU - the so-called type approval system.

ACEA secretary general Erik Jonnaert said: "It is essential that manufacturers can maintain valid type approvals in both the EU and the UK as of 30 March 2019, no matter where the approval was issued.

"We are therefore calling on the European Commission to clarify how existing approvals can be transferred from an EU27 authority to the UK, and the other way around."

ACEA also recommends that the EU and the UK mutually recognise each other's vehicle approvals after Brexit - something that would only be possible if the UK remains fully aligned with all relevant EU legislation.

Another concern for ACEA is whether the UK car market, currently the second largest in the EU, will still count towards 2021 CO2 emissions targets.

ACEA says it should in order to avoid the industry having to exclude cars sold in the UK from its figures.

Jonnaert said: "Excluding UK data from the CO2 calculations would leave very limited time for the industry to readjust compliance strategies for reaching the stringent 2021 targets."

Another concern for the industry is potential supply chain delays in the event of new customs checks on deliveries to and from the UK. Due to the just-in-time nature of vehicle manufacturing, these could, in a worst case scenario, lead to assembly line stoppages.

Jonnaert said: "The UK deciding to remain in a customs union with the EU would of course be an effective solution to enable frictionless trade in goods between the EU and UK.

"But, regardless of which Brexit scenario is pursued, it is essential that EU and UK authorities already now start preparing to simplify customs procedures and to reinforce their customs capacity.

"Otherwise we will see severe land and sea-port congestion at both sides of the channel once the UK leaves the EU."

ACEA has also called for tariffs to be avoided - potentially 10% for passenger cars and 10% or 22% for commercial vehicles - in the event of a cliff-edge Brexit, due to the adverse effect this would have on manufacturers and customers. 



Share


Subscribe