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Despite the trade deal recently reached between the UK and the European Union, the British automotive industry has already suffered irreversible damage.
Before the deal was reached, Nissan opted against building the upcoming all-electric Ariya SUV in the UK, and two years ago ditched plans to build another SUV at its Northern England factory. Honda will also close its only factory in the UK and BMW has delayed work on a next-generation Mini platform and may ultimately decide to build future Mini models in Germany or China.
As part of the trade deal, petrol and diesel vehicles need to be made with at least 55 per cent local content to avoid tariffs. Additionally, EVs and hybrids will need 40 per cent local content, 10 per cent more than what the UK had sought, and until 2023, batteries can have as much as 70 per cent overseas content. However, from 2024-2026, batteries can only have 50 per cent overseas content while EVs and hybrids can have 55 per cent foreign content,
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Automakers including Nissan Motor might struggle to qualify some U.K.-assembled models for tariff-free export to the EU as they evaluate their local sourcing.