LONDON (Reuters) - A European trade group for the car industry has called for an extension to the phase in of tougher post-Brexit trade rules for electric vehicle batteries, saying the supply chain was simply not ready.
The statement follows a warning by Stellantis NV (LON:0QXR), the world's No. 3 carmaker by sales for brands including Vauxhall, Peugeot, Citroen and Fiat, that Britain needs to renegotiate rules in the Brexit deal or it will have to close British car plants.
"There has been massive investment in European battery supply chains," the European Automobile Manufacturers' Association (ACEA) spokesperson said in a statement.
"The capacity to meet these rules of origin will come, but just not in the next few years. ACEA has requested that the current phase-in period for battery rules is extended by three years."