BM 800,000 jobs in the endangered auto industry

Stelantis, one of the world's largest car producers, in which Opel also operates, is putting a lot of pressure on the British government: either immediately renegotiate a portion of the Brexit trade deal with the EU or it will have to close its factories in Great Britain. Britain risks losing hundreds of thousands of jobs. Stelantis is a Dutch-American corporation based in the Netherlands and employs about 250,000 people in some countries.

What is this about?

Starting next year, stricter regulations for industrial products between the EU and Great Britain will be implemented. Under the Brexi deal, 45 per cent of the components of electric cars must be originally from the UK or the European Union to export to tax-free EU territory. From 2027, up to 65 percent of these countries should be born.

Danger is real.

This is very difficult to do, says Mike Howes, director general of the British Automobile Industry Trade Association. Batteries, which make up much of the value of electric cars, are difficult to locate. Local production cannot meet demand, he says.

There is a real risk that car producers will have to pay customs duties for exports to the EU by next year. Electric batteries will probably have to be bought outside the EU, and most of them will likely come from Asia, China or South Korea.

800,000 jobs at stake

Andy Palmer, a car industry expert and Nissan's former manager, fears this will not affect only about 5,000 employees in Stelantis. In total, about 800,000 jobs in Great Britain are linked to the car industry, Palmer says.

The British government must now act urgently: The most important thing is to turn battery producers and other car producers into BM, Palmer says.

Meanwhile, Great Britain must continue negotiations with the EU to achieve better conditions. Other car producers, including the German Automotive Industry Association, seek this.

Will Labus Benefit?

The opposition Labour Party is also involved. Because the promise of many conservatives that everything will be better with Brex is getting worse. The Brex agreement is not working, says lab leader Keir Starmer. The labists' goal is to improve this deal to make Brex work. So it is possible that bad news like this from the auto industry will give Labus a power for the upcoming election in 2025. / DW