The European Union plans to modify its “Buy European” regulations regarding company cars and electric vehicles, extending exceptions to Great Britain, Japan, and South Korea. According to the Handelsblatt, these three nations will soon be classified as “Trusted Partners,” allowing their vehicles to qualify for certain reliefs from the EU’s strict guidelines for corporate fleets and company cars.
This potential change is specifically aimed at protecting the Nissan plant in Sunderland, UK. The Japanese automaker had previously warned that the stringent EU rules mandated the closure of the factory in Britain. Given that nearly half of all vehicles produced in the UK-approximately 45 percent-are sold into the EU, the “Made in EU” requirements threatened the country’s competitive advantage.
The new provisions in the “Industrial Accelerator Act” (IAA) stipulate that state subsidies will fundamentally be reserved only for vehicles manufactured within the EU. This measure is intended to prevent imports from benefiting from European taxpayer funds. While the requirements for business fleets and company cars are particularly rigorous, exceptions for partner countries had never been included previously.
Nissan had alerted UK Prime Minister Keir Starmer that the factory in Sunderland might have to close under the current “Buy European” mandates. It is reported that Starmer and his colleagues have now convinced Commission President Ursula von der Leyen and her commissioners that preserving the integrated supply chains among Korea, Japan, and Great Britain is in the EU’s own best interest.
