Ford is asking for an extension of post-Brexit commerce guidelines till 2027 to keep away from disruption to electrical car (EV) disruption.

The Blue Oval has invested £1.6 billion at its passenger automotive manufacturing facility in Cologne, Germany and an additional £380 million at its e-motor manufacturing web site in Halewood, Merseyside.

New guidelines from subsequent 12 months will imply 45% of the worth of an EV being offered within the EU has to originate from the UK or the EU to keep away from a ten% tarriff.

Nonetheless, UK and EU car producers are presently sourcing quite a lot of their EV batteries from Asia and this could account for a big proportion of the price of producing an EV. It might imply UK and EU producers would doubtless entice these 10% as they can not ramp up battery manufacturing shortly sufficient.

Tim Slatter, Ford Britain chair, stated: “At this time the business doesn’t have adequate provide of locally-sourced batteries and parts to satisfy demand.

“Tightening the commerce guidelines at this level dangers undermining the change to EVs with tariffs and including pointless value to prospects desirous to go inexperienced.

“Producers who’ve invested closely early within the transition might be hardest hit by tariffs as a result of combustion engine autos will proceed to maneuver tariff-free.”

Slatter stated Ford has supported the Authorities’s zero emission car (ZEV) mandate, that may prescribe the proportion of EV automotive and van gross sales from 2024.

Nonetheless, he stated introducing EV tariffs on the identical time will undermine the ZEV mandate and sluggish EV gross sales.

He stated: “Ford is asking for present commerce necessities to be prolonged to 2027, to permit time for the battery provide chain to develop in Europe and to satisfy EV demand.

“Tariffs will hit each UK- and EU-based producers, so it’s critical that the UK and EU come to the desk to agree on an answer.”

Ford’s assertion now joins Stellantis and Jaguar Land Rover on requires a rethink on post-Brexit commerce guidelines.

In an announcement to i, a Jaguar Land Rover spokeperson stated the timing of the commerce modifications are “unrealistic and counter productive” and JLR can also be calling on the UK and EU act shortly to agree on a greater answer”.

Prime Minister Rishi Sunak confirmed to reporters whereas in Japan that the UK is participating in dialogue with the EU about easy methods to deal with issues across the commerce guidelines.

He stated: “Automotive producers throughout Europe, not simply within the UK, have raised issues.

“And on account of that we’re engaged in a dialogue with the EU about how we’d deal with these issues relating to auto manufacturing extra usually.”