The European Union’s proposed Industrial Adjustment and Resilience (IAA) plan 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 under the rules risks disrupting an €80 billion trade partnership between the UK and the bloc. Industry leaders argue the restrictions could strain supply chains and penalize companies already navigating post-Brexit trade barriers. The move highlights growing tensions over automotive production standards in a market where cross-border collaboration remains critical.
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.
