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JANUARY 6, 202110:19 AMUPDATED 3 HOURS AGO

UK car sector warns of Brexit costs as it pushes for investment

LONDON (Reuters) - Britain’s car industry warned on Wednesday the Brexit trade deal will add additional costs to firms, despite the sector securing tariff-free trade with the European Union, just as it needs to pick up investment in electric vehicles.

“It can be high single-figure percentage cost to an individual manufacturer. This is not a free deal,” said SMMT Chief Executive Mike Hawes.

“The paperwork ..., you used to do it on a minority of vehicles. Now you’re doing it on just about all your vehicles, apart for those that are going to the UK market.”

Automakers will need documentation to prove vehicles meet new UK and EU content thresholds set at 55% for conventional models, with a one-year grace period.

Britain and other European countries will be vying for more green investment, such as battery gigafactories, over the next decade as bans on conventional vehicles loom.

Workers on Tuesday called on French automaker PSA to build electrified vehicles at its northern English factory, in a major upcoming investment decision.

“One of the big challenges for the UK now is to... see battery manufacturing established in the UK and grow in the UK to compete with Europe, and indeed, compete more globally,” said Hawes.

https://www.reuters.com/article/uk-britain-eu-autos-idUKKBN29B01E?taid=5ff52b375b2aa00001d6a16a&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter