Stellantis tells UK to rework Brexit deal for car plants to remain open: Report

Stellantis has called for a re-working of the Brexit deal, without which British car factories will have to shut down, according to Reuters. The automaker stated that in the present agreement, it would have to contend with tariffs upon the export of electric vans to Europe from the coming year when the post Brexit rules come into effect, the newswire reported. 

Stellantis wants the government to come to an agreement with the EU on furthering the timelines for sourcing of components to 2027 from the current 2024 deadline, a similar proposition also espoused by carmaker Ford, Reuters reported. 

Britain said that it is in disussions with Brussels, the newswire stated. 

Automakers opine that besides reworking tariffs, Britain needs to get more battery production for its car industry, Reuters stated. 

The newswire reported that this issue facing the country's automotive industry is interlinked with the changing preference for electric vehicles. 

As per the current trade agreement, when Britain separated from the bloc, it stated that 45 percent of an ev value ought to come from the EU or Britain from 2024, to circumvent tariffs, the newswire stated. 

The issue is that the battery pack results in half a new electric vehicle's cost, besides them being heavy and costly to transport to long distances, the newswire stated. 

The Society of Motor Manufacturers and Traders has stated that the present manufacturing would not enable the industry to cater to requirements for battery parts and batteries, the newswire stated.