Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA) have both called for the post-Brexit EU trade requirements on rules of origin for electric vehicles (EVs) to be delayed until 2027 from 2024. The tariffs will add pointless costs for consumers and slow the transition to electric.
Ford warned that the car industry in the U.K. does not have enough locally-sourced batteries and components to meet demand. Tightening the trade rules at this point risks undermining the switch to EVs with tariffs, as manufacturers who have invested heavily early in the transition will be hardest hit by tariffs.
The carmakers’ statements follow a similar call by Stellantis NV who warned that British car plants will close with the loss of thousands of jobs unless the Brexit deal is swiftly renegotiated.
Shares of F and STLA are up 1.54% and 1.48% respectively in early trading on Wednesday.