{"id":117565,"date":"2026-03-10T00:29:56","date_gmt":"2026-03-10T03:29:56","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/898406672"},"modified":"2026-03-10T00:29:56","modified_gmt":"2026-03-10T03:29:56","slug":"nissan-warns-eu-rules-could-threaten-uk-automotive-manufacturing","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/10\/nissan-warns-eu-rules-could-threaten-uk-automotive-manufacturing\/","title":{"rendered":"Nissan Warns EU Rules Could Threaten UK Automotive Manufacturing"},"content":{"rendered":"
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Under proposals being developed by the EU, public subsidies intended to accelerate electric vehicle production would only apply to EVs built within European plants.<\/p>\n

EU Industrial Plans Prompt Industry Alarm<\/h2>\n

The announcement by EU industrial strategy commissioner St\u00e9phane S\u00e9journ\u00e9 outlined the proposed Industrial Accelerator Act (IAA), which aims to shield the bloc from low-cost competition from China. Although Nissan has not publicly confirmed any warnings, several reports suggest the company has privately told the UK government that the Sunderland site could face closure if the rules are implemented.<\/p>\n

The Society of Motor Manufacturers and Traders (SMMT) has also voiced concern, warning that the proposals could damage cross\u2011channel trade worth \u00a370 billion annually. Nissan\u2019s Sunderland factory is the UK\u2019s largest car plant, employing 6,000 people and capable of producing 600,000 vehicles a year.<\/p>\n

Industry Leaders Warn Of Competitive Disadvantage<\/h2>\n

Mike Hawes, chief executive of the SMMT, said: \u201cThe UK automotive sector is gravely concerned by the \u2018Made in Europe\u2019 proposals set out in the European Commission\u2019s Industrial Accelerator Act. As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost \u00a370bn annually.\u201d<\/p>\n

He added that the IAA could place UK manufacturers at a \u201csystemic competitive disadvantage\u201d in the EU market and may breach the EU\u2011UK Trade and Cooperation Agreement.<\/p>\n

Concerns centre on the third annex of the draft legislation, which outlines how corporate fleet purchases \u2014 a major source of new registrations and second-hand vehicles \u2014 could qualify for subsidies. Eligibility may depend on vehicles being assembled within the EU, potentially excluding UK\u2011built models.<\/p>\n

European Industry Also Raises Concerns<\/h2>\n

Germany\u2019s automotive industry association, the VDA, has also criticised the proposals. President Hildegard M\u00fcller warned that protectionist measures could raise costs for manufacturers and consumers while risking retaliatory action from key export markets. \u201cIn its current form, the IAA will not significantly improve the competitiveness of industry in Germany or across Europe. Unfortunately, its industrial policy impact is likely to remain very limited,\u201d she said.<\/p>\n

Calls For UK Inclusion In EU Framework<\/h2>\n

Hawes urged policymakers to resolve the issue quickly, calling for the UK automotive sector to be granted \u201cfull trusted partner status\u201d. A Nissan spokesperson suggested that applying the same rules used to determine \u201cUnion origin\u201d to all EV support schemes could offer a straightforward solution and align with the EU\u2019s aim of simplifying regulation.<\/p>\n

UK business secretary Peter Kyle travelled to Brussels last week to argue for the UK\u2019s inclusion as a full partner in the initiative, although he did not meet S\u00e9journ\u00e9, who is responsible for the proposal.<\/p>\n

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… executive of the SMMT, said: \u00e2\u0080\u009cThe UK automotive<\/span> sector is gravely concerned by … Also Raises Concerns Germany\u00e2\u0080\u0099s automotive<\/span> industry association, the VDA, has also … the issue quickly, calling for the UK automotive<\/span> sector to be granted \u00e2\u0080\u009cfull …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-117565","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/117565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=117565"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/117565\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=117565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=117565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=117565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}