The automaking giant Stellantis is meeting with U.K. ministers to warn post-Brexit trading arrangements severely risk its operations in the country. Stellantis manufactures Vauxhall, Fiat, Opel and other vehicles across two plants in the U.K., employing more than 5,000 people. If the cost of EV manufacturing in the U.K. becomes uncompetitive and unsustainable, operations will close, citing previous decisions by BMW Group to relocate electric Mini Production to China, and investments by Honda in EV production in the U.S. following the closure of its U.K. site. The EU-U.K. Trade and Cooperation Agreement gave battery and EVs a grace period before full Rules of Origin tariffs kick in, responding to these sourcing challenges. However, they will become progressively stricter in the coming years, rising to 45% and then 65% in terms of required domestic production. Automakers otherwise face 10% export duties on EVs.

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