The European Union’s proposed Industrial Adjustment and Recovery Plan (IAA) could force electric vehicle manufacturers to use at least 70 percent locally sourced components, raising concerns among British automakers. Exclusion from the "Made in EU" designation risks disrupting an €80 billion trade partnership between the UK and the bloc, potentially straining supply chains and industry cooperation. Industry leaders argue the rule could create barriers for non-EU producers while pushing up costs for consumers. The move highlights growing tensions over automotive standards as the EU tightens its green manufacturing policies.
The EU's IAA would mandate 70 percent EU-made components in EVs, with UK automakers warning that exclusion from "Made in EU" status would threaten an €80 billion trade relationship.
