The European Auto Sector Is Requesting That Britain Be Spared From The New EU Subsidy Regulations

The European Automobile Manufacturers Association (ACEA) has asked the European Union to exempt the UK from new rules on state subsidies for the car industry.

ACEA warns that otherwise British manufacturers could be practically excluded from the largest export market, which would represent one of the most difficult consequences of Brexit for that sector, the Guardian reported.

According to the proposal of the Industrial Accelerator Act, only manufacturers whose vehicles and key components are produced in the European Union would have the right to subsidies for the purchase and production of cars. Representatives of the automotive industry believe that Great Britain, as well as Turkey and Morocco, should be exempted from the rules due to their strong integration into European supply chains.

The British government and the Society of Motor Manufacturers and Traders (SMMT) are in talks with the European Commission to ensure British companies retain access to the European market under the new regime.

Manufacturers such as BMW, Volkswagen and Nissan have warned that without exemptions, some factories in the UK could be closed or significantly reduce production.

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