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Mercedes-Benz boss warns UK exclusion from EU car law would 'hurt' industry

The head of Mercedes-Benz and president of the European Automobile Manufacturers’ Association (ACEA) has stated that excluding the UK from the EU's "Made in Europe" legislation would harm the car industry across the bloc and in the UK.

  • Ola Källenius, head of Mercedes-Benz and ACEA president, said locking the UK out of the "Made in Europe" law would "weaken the industry on both sides".
  • The "Made in Europe" law, also known as the Industrial Accelerator Act (IAA), aims to protect local industry from non-EU competition.
  • The ACEA is also lobbying for an urgent suspension of planned 10% tariffs on UK electric vehicles imported to the EU and EU EVs exported to the UK.

Ola Källenius, the head of Mercedes-Benz and president of the European Automobile Manufacturers’ Association (ACEA), has warned that excluding the UK from the EU’s “Made in Europe” legislation would be a “deliberate choice” by EU leaders to “hurt” the car industry across the bloc. Mr Källenius stated that such a move would “weaken the industry on both sides”.

The legislation, also known as the Industrial Accelerator Act (IAA), aims to protect local industry by countering competition from outside the EU, primarily China. Political leaders are hoping to reach an agreement on the IAA in the coming weeks, with EU leaders aiming for a political agreement on the current text by December.

Andy Burnham has been lobbying for the UK's inclusion in the legislation, facing resistance particularly from France. The prime minister intends to raise the issue at the UK-EU summit on 20 November. Meanwhile, the ACEA is also seeking an urgent suspension of plans to introduce 10% tariffs on UK electric vehicles (EVs) imported to the EU, and EU EVs exported to the UK, with a deadline in less than three months.

Why this matters: The potential exclusion of the UK from the "Made in Europe" law and the introduction of 10% tariffs on electric vehicles could impact the competitiveness and supply chains of the car industry in both the UK and the EU.

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