Rishi Sunak has expressed his concerns on the updated UK – EU car manufacturing trade deal that could pose a threat to the UK vehicle industry. As the world moves towards electric vehicle usage and a greener future, the trade deal between the UK and EU would mean that any cars, including electric, manufactured in the UK would require at least 65% of the value of the car to originate in either the UK or the EU – rising from the currently proposed 55%.
The UK government is entering discussions with the EU to address these concerns. However, this rise of cost could spell an increase in the quality and production of electric vehicles within the UK, a potential surge for the electric vehicle industry and an overall reduction in harmful emissions. With 65% of the vehicles originating from the UK or EU, the local sourcing would mean a reduction in long-distance importing of parts and a decrease in harmful transportation-related emissions.
The locally sourced parts could also trigger a much-needed boom for the electric vehicle industry. If the EU and UK car manufacturing industries invest in the higher quality of production, then investors and consumers alike could finally take the next steps into a world of sustainable energy and a brighter, greener future with these new electric vehicles. While the rising costs may have an adverse effect initially, the potential for increasing quality of production could provide a new lease of life for electric vehicles and make them a much more desirable alternative to emission-based vehicles of the past.
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Source: https://www.bbc.co.uk/news/business-65631167