Ola Källenius, the head of Mercedes-Benz, has warned that excluding the UK from the EU’s flagship industrial legislation, known as the Made in Europe law, would be a “deliberate choice” by EU leaders to harm the car industry across the bloc. Speaking as president of the European Automobile Manufacturers’ Association (ACEA), Källenius stated that such a move would “weaken the industry on both sides.”
Context of the Legislation
The Made in Europe law aims to protect local industries by countering competition from outside the EU, primarily targeting China, which currently enjoys a £1 billion a day trade surplus with the EU. However, this legislation could also negatively impact close allies of the EU, including the UK, Norway, Turkey, and Switzerland.
Key Statements
““It does not make any sense … We would hurt our industry in the UK and the EU. That would be a deliberate choice to worsen the competitiveness of your own [EU] industry,” Källenius remarked during an annual briefing in Brussels on the state of the car industry.
Källenius emphasized the importance of local supply chains, stating, “We are talking about how we industrialise more in Europe, how we build local supply chains, that is what the IAA is all about.”
Political Developments
Andy Burnham, the mayor of Greater Manchester, has been actively lobbying for the UK’s inclusion in the Made in Europe legislation but faces resistance, particularly from France. The UK Prime Minister plans to address this issue at the upcoming UK-EU summit on 20 November, hoping it is not too late, despite EU leaders aiming for political agreement on the current text by December.
