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BCN-24
BRITAIN-EU-BREXIT-AUTO-ENVIRONMENT
Britain’s supply of electric cars at risk from Brexit: think-tank
BRUSSELS, May 28, 2018 (BSS/AFP) – Britain risks a shortage of electric
cars after Brexit as carmakers will lose an incentive to sell low-emission
vehicles there, a Brussels-based think-tank warned.
Because British sales will no longer count towards carmakers’ EU carbon
dioxide targets, they may choose to sell to other European countries instead,
the Transport and Environment (T&E) group warned.
Britain was the third largest market for zero emission vehicles in the EU
last year and the largest for plug-in hybrids, the group said in the report
obtained by AFP.
“Carmakers may simply opt to dump their less efficient models in the UK
market,” said Cecile Toubeau of T&E.
A shortage of electric and hybrid cars would be a blow to the British
government’s claims that it is aiming for a so-called “Green Brexit” with
environmental standards equal to or higher than those in the remaining 27 EU
nations, the group said.
Brexit also risks hitting the wider British car industry, the group
warned.
Up to 6,700 British auto sector jobs — one tenth of the current workforce
— could be lost if Britain leaves the EU without a full divorce deal, T&E
said.
A so-called “Hard Brexit” would see cars manufactured in Britain becoming
10 percent more expensive if they had to be traded under World Trade
Organisation (WTO) tariffs, it said.
Vehicle components would be 4.5 percent more expensive.
“This loss of competitiveness, along with the administrative burden and
delays linked to increased customs checks, could be a strong incentive for
relocating to the EU,” it said.
The fate of British auto production after Brexit has been a major concern
for Prime Minister Theresa May, who has pleaded for certain economic sectors
to be allowed to keep seamless trade links to Europe.
In March the European Automobile Manufacturers’ Association (ACEA) said
that Britain’s biggest manufacturing sector — most of which is foreign owned
— was at a serious risk of disruption with Brexit.
BSS/AFP/HR/1340