Nissan pressures UK government over ‘Made in EU’ rules
As three people familiar with the discussions told the Financial Times, the Japanese carmaker has even threatened to close the plant if the UK is politically excluded from the EU’s ‘Made in Europe’ rules. With its British plant, Nissan is one of the largest employers in the United Kingdom’s automotive industry. Around 6,000 people work directly for Nissan in Sunderland, while the supply chain accounts for about 30,000 additional jobs, according to the FT.
The European Commission presented the Industrial Accelerator Act last week. The package aims not only to promote the growth of EU industry but also to strengthen independence from the United States and China in key sectors – including the automotive industry. If the legislative package is adopted in its current form, electric cars and other goods would have to demonstrate a high share of EU value creation if they are to receive any form of funding from a member state – for example through subsidies or public procurement.
However, the European Commission is aware of the importance of its own open market and therefore intends to allow products from partner countries with which it maintains close ties or free trade agreements – but only if there is greater reciprocity, meaning EU products must also be guaranteed free access to those partner countries. Whether such reciprocity exists will now be examined on a sector-by-sector basis – with the outcome still open.
According to the FT report, Nissan said it welcomed the fact that the Commission ‘recognised how important partners are to the EU supply chain’.
However, the company added:“Using a different definition for corporate fleets and the small‑car super credit creates confusion and adds unnecessary complexity for the industry.”
The British government, which had strongly lobbied against strict ‘Made in EU’ rules in advance, emphasised its alignment with the EU. “The UK is a close and trusted European partner, committed to our shared security and economic co-operation. Now is the time to work together as like-minded partners to boost growth, resilience and economic security.”
The sector review for the automotive industry is thus of enormous importance for companies that manufacture vehicles in the UK for the entire European market – including not only Nissan but also JLR and Toyota. The EU is currently the largest export market for the British automotive industry, and industry representatives have warned of such a regulation, describing it as ‘an existential threat.’
Among other models, Nissan manufactures the Qashqai compact SUV and the third generation of its electric model, the Leaf, in Sunderland. To prepare the plant for the new Leaf and future electric models, the Japanese company has invested in modernisation, while battery partner AESC has built its cell factory near the car plant. According to the FT report, utilisation currently stands at only around 30 per cent due to weak demand.
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