By GB News (World News) | Created at 2026-09-22 07:16:01 | Updated at 2026-09-22 08:34:46
1 hour ago
Significant losses could be seen within months as the European Union continues to exclude the UK from its policies, potentially impacting an €80billion (£68.6billion) automotive relationship.
The Society of Motor Manufacturers and Traders (SMMT) has highlighted the integrated relationship between the UK and the European Union amid fears it could be impacted soon.
In the near future, the EU will intensify talks relating to the Industrial Accelerator Act, as it works to shore up sectors across Europe given the emerging threat from China.
The IAA states that the UK is currently excluded from certain "Made in Europe" regulations, meaning vehicles manufactured in the UK risk losing out on certain incentives.
These incentives are only available to EU-made products and include backing for cleaner fleets and CO2 super credits.
The UK is still excluded from the EU's Member State procurement, despite a storied history between the two partners.
Through supply chain activity and wage-funded customer spending, the UK auto sector supports 250,000 jobs across the bloc.
The UK and EU also have a trading relationship worth a staggering €80billion (£68.6billion) annually, according to analysis from Oxford Economics.
The UK's automotive voice has called for closer cooperation with the EU
GETTY
UK automotive production is estimated to support around €24billion (£20.6billion) of economic activity across the bloc and across all sectors.
The export of vehicles from the UK to Europe is also significant, with estimates that they generate €5.6billion (£4.8billion) of spending and support 58,000 jobs.
Mike Hawes, chief executive of the SMMT, warned that both sides of the trading relationship could be hammered if the UK is given access to Made in Europe provisions.
He said: "Despite Brexit, supply chains remain deeply integrated and the cross-Channel trading relationship is worth €80billion (£68.6billion) a year, supporting jobs, growth and investment.
The SMMT has warned of serious consequences if issues arise between the UK and EU
SMMT
"The EU is rightly focused on strengthening its industrial base, but the UK remains fundamental to Europe's automotive ecosystem and is therefore essential to that ambition.
"Excluding the UK from 'Made in Europe' would be an own goal, weakening competitiveness, reducing scale and limiting consumer choice."
Mr Hawes outlined that the UK's automotive sector needed recognition as a trusted partner within the IAA to "strengthen, rather than fragment, Europe's automotive industry".
Earlier this month, European Relations Minister Hamish Falconer raised the issue with European Commissioner Maroš Šefčovič in Brussels.
The automotive trading relationship between the UK and EU is estimated to be worth €80billion (£68.6billion)
The UK remains the EU's second-largest export market for vehicle parts, which is worth around €12billion (£10.3billion) every year.
It is also responsible for one-tenth of the EU's imported auto parts, although this could be impacted unless changes are made in Brussels.
A Government spokesperson told GB News: "We are working with carmakers about rules of origin requirements for electric vehicles, and will continue to engage with the EU to support industry on both sides of the channel."
