Nissan says Sunderland plant could close if UK excluded from Made in Europe' rules

"Nissan has privately warned the UK government it could be forced to close if the proposals became law. One industry executive told the Financial Times that Nissan could face an existential threat if it was frozen out of access to EU incentives. The company's Sunderland site is Britain's biggest car factory, with 6,000 employees and the theoretical ability to make 600,000 cars a year."

"The UK automotive sector is gravely concerned by [the] Made in Europe proposals set out in the European Commission's Industrial Accelerator Act. As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost 70bn annually. He said he feared the IAA would effectively put UK manufacturers at a systemic competitive disadvantage in the EU market."

"Under the EU plans, public subsidies to speed up the development of electric vehicles would only be available to EVs made in European plants. Unveiled by the competition commissioner, Stephane Sejourne, on Wednesday, the proposed Industrial Accelerator Act (IAA) is designed to protect the EU from cheap competition from China."

The EU's proposed Industrial Accelerator Act would restrict public subsidies for electric vehicle development to vehicles manufactured within European plants, designed to protect against Chinese competition. Nissan has privately warned the UK government it could be forced to close its Sunderland facility, Britain's largest car factory with 6,000 employees, if excluded from these incentives. The UK automotive industry, represented by the Society of Motor Manufacturers and Traders, expressed grave concern about the proposals, arguing they discriminate against UK-made vehicles and components. The industry emphasized that the UK should be included as a trusted partner, warning the rules could damage the £70 billion annual cross-channel trade relationship and create systemic competitive disadvantages for UK manufacturers in EU markets.

Read at www.theguardian.com