{"text":[[{"start":9.96,"text":"Europe’s motor industry is set to receive a major reprieve after the EU and the UK moved to delay tariffs on electric vehicles that carmakers had warned would make them more vulnerable to Chinese competition."}],[{"start":22.9,"text":"Brussels is consulting industry on proposals to postpone the 10 per cent levy which would apply to most vehicles from January 1, according to several people familiar with the matter. The UK supports the move, two of them said."}],[{"start":37.14,"text":"The Brexit deal, which came into effect in 2021, aimed to incentivise a European battery supply chain by progressively raising the threshold of domestic content needed in a car to exempt it from tariffs."}],[{"start":49.84,"text":"But chemical and battery production has not increased as fast as expected, with many models still using battery packs and chemicals from Asia."}],[{"start":57.52,"text":"Acea, a lobby group that represents EU carmakers, said about 82 per cent of the 520,000 EV passenger vehicles and vans expected to be sold in 2027 — worth about €17.9bn — would have to pay tariffs."}],[{"start":73.42,"text":"It has called for a tougher battery pack assembly requirement to be postponed until 2030 and the additional requirement of European-made cathode material used in electrodes until 2032."}],[{"start":85.06,"text":"Acea members worry the tariffs are pricing them out of the UK market while Chinese producers are increasing their market share."}],[{"start":91.84,"text":"The two sides have already pushed back the changes in so-called “rules of origin” from 2024 to 2027. At the time, they used a legal act stating they would not repeat the move."}],[{"start":103.56,"text":"While any delays will be welcomed by carmakers, the EU chemicals industry has been lobbying hard against the move, arguing it would damage demand for its products."}],[{"start":113.24,"text":"Companies have invested millions of euros in European production of cathode active materials, the key metals that form the positive electrode of batteries in electric cars."}],[{"start":123.04,"text":"The European Commission proposals, which could still change, involve a shorter delay than Acea wants to try to maintain demand for EU-made batteries, said two of the people familiar with the matter."}],[{"start":133.92,"text":"They include a simple one-year delay and a two-year plan allowing manufacturers to offset cars exported with non-compliant batteries against models sold domestically with a compliant battery, they said."}],[{"start":145.08,"text":"One industry figure said the measures were unusual but potentially workable. “We’re analysing this to see how we can maximise compliance under this system. How does it fit into how we operate?”"}],[{"start":156.16,"text":"Two UK officials said they expected to begin serious negotiations on a delay to the rules after an EU-UK summit on November 20."}],[{"start":165.32,"text":"A report this month for the SMMT, which represents UK carmakers, found that despite an estimated investment of €72bn in battery and EV manufacturing facilities since 2017, it still imports around two-thirds of the lithium-ion batteries it uses. The UK, meanwhile, has an even smaller domestic battery manufacturing base."}],[{"start":186.48,"text":"Mike Hawes, chief executive of SMMT, said: “The UK and EU are bound by €80bn in annual automotive trade and millions of jobs.” He called for “a pragmatic solution to 2027 rules of origin, and stronger integrated supply chains”."}],[{"start":202.4,"text":"The report, by LSE Consulting, said the two jurisdictions should align policy because of “mutual dependency”."}],[{"start":208.96,"text":"The EU accounts for 60 per cent of UK vehicle exports while 30 per cent of EU exports go to the UK — the biggest buyer of EU-built EVs. The report called for “appropriate flexibility” on rules of origin and a joint battery strategy."}],[{"start":223.8,"text":"The Commission has been approached for comment."}],[{"start":231.06,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794473536_9310.mp3"}