The European Union’s proposal for a Made in Europe policy under its Industrial Accelerator Act has been heavily criticised by newly-appointed BMW chairman Milan Nedeljković, who’s currently in charge of BMW Group’s production including factories in the UK.
The EU’s Industrial Accelerator Act has been designed to rebuild Europe’s manufacturing base, while accelerating a shift to low-carbon industry. Within it is a Made in Europe plan which will promote locally-made products to boost European industry.
The act proposes that only EU-made electric cars should benefit from sales incentives and emissions credits, and would be the only vehicles allowed to be purchased by EU member government corporate fleets.
With two large-scale manufacturing plants in the UK at Mini Plant Oxford (producing Mini Cooper models) and BMW Group Plant Hams Hall (making engines for Mini, BMW and Rolls-Royce cars), BMW could find it more difficult to export vehicles and parts from the UK to Europe.
Nedeljković is following on from where current BMW chairman Oliver Zipse left off – Zipse has described the Industrial Accelerator Act as “protectionism”.
Now Nedeljković has called the act and its Made in Europe proposals “dangerous” and “not helpful”.
Speaking at the BMW Group Plant in Munich, which has just received a €650 million (£562 million) revamp to produce BMW’s new all-electric i3 model, Nedeljković said: “Our business model is based on global free trade. Currently, this fundamental economic concept is coming under pressure. We in Europe must be careful not to fall behind.
“In our view, the current proposal for the Industrial Accelerator Act is not helpful in this regard.
“It focuses on ‘Made in Europe’ while neglecting the supply chains of European corporations operating globally. This will lead to less innovation, lower growth – and finally to reduced prosperity in Europe – a development which is dangerous.
“Europe needs to act more future-oriented by strengthening free trade – and creating a positive business environment. We are convinced: Europe needs a strong industrial footprint. Since, industry is the basis for applied science and innovation. And we are part of it.”
The effect on the UK car industry could be huge with Mike Hawes, CEO of automotive trade body SMMT, saying: “The UK automotive sector is gravely concerned by the “Made in Europe” proposals set out in the European Commission’s Industrial Accelerator Act. As drafted, it would discriminate against UK-made vehicles and components, damaging a trading relationship worth almost £70 billion annually.
“The strict EU assembly rules and EU27 eligibility criteria currently proposed would effectively put UK manufacturers at a systemic competitive disadvantage in the EU market.”
