Ford Authority

Ford Says Post-Brexit EU Trade Rules Should Be Delayed

As automakers like Ford work to convert their lineups to all-electric vehicles in the coming years, there are many challenges to overcome aside from securing raw materials and building new manufacturing plants. There are also many legal considerations automakers must take into account, particularly in Europe, which is aiming to end the sale of non-zero emissions vehicles by 2035. However, FoMoCo, in particular, is facing another issue related to Brexit, or the UK’s decision to exit the European Union – trade requirements on rules of origin for EVs are set to take effect in 2024, which has prompted The Blue Oval to ask for that change to be delayed to 2027, according to Reuters.

“Ford is calling for current trade requirements to be extended to 2027, to allow time for the battery supply chain to develop in Europe and to meet EV demand,” the automaker said in a statement. “Tariffs will hit both UK- and EU-based manufacturers, so it is vital that the UK and EU come to the table to agree a solution. Tightening the trade rules at this point risks undermining the switch to EVs with tariffs. Manufacturers who have invested heavily early in the transition will be hardest hit by tariffs because combustion engine vehicles will continue to move tariff-free.”

Under the current trade deal, 45 percent of the value of an EV sold in Europe must come from Britain or the EU staring in 2024 to avoid tariffs, but Ford has warned that the UK doesn’t currently have enough locally-sourced components and battery packs to meet demand.

In the meantime, Ford is investing £230 million pounds ($316 million USD) in the UK’s Halewood Transmission plant to transform it into a facility capable of producing electric power units for future all-electric vehicles that will be sold in Europe. When the plant begins power unit production in 2024, Ford expects it to have a capacity of around 250,000 units per year.

We’ll have more on this soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Jon

    just another money grabbing crap the government is trying to do


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