UK government sets out no-deal Brexit scenario for automotive manufacturers

In the same scenario, European-based manufacturers would need to obtain UK-specific approvals to sell products in the UK.

At present, vehicle and component manufacturers must show they comply with safety and environmental standards before they can market a product in a process known as type-approval. In a new technical note, the Department for Transport (DfT) has outlined the process it envisages putting into place in the event of a no-deal Brexit.

The DfT said if the UK withdraws from the EU without an agreement in place, type approvals issued in the UK would no longer be valid for sales or registrations on the EU market and European Community (EC) type-approvals issued outside of the UK would no longer be automatically accepted on the UK market.

However approvals for systems and components which meet UN Economic Commission for Europe standards would still be recognised.

The government said it planned to issue provisional UK type approvals to manufacturers that already have EC type-approvals. This would be an administrative conversion of EC type approvals into UK type approvals, but would be time-limited.

Manufacturers would be able to request a full conversion of their EC type approval to a UK type approval during the time-limited period, to avoid vehicles and other products having to be fully retested.

Meanwhile those wishing to sell products in Europe would need to obtain a new EC type approval from a type-approval authority in an EU country.

The DfT said manufacturers seeking new approvals after Brexit to sell into the UK will have to comply with the requirements of the UK scheme, which will be fully aligned with European requirements. Full testing will be avoided if the manufacturer already holds an EC type approval issued after the Brexit date of 29 March 2019, if the UK’s Vehicle Certification Agency (VCA) is satisfied with documentary evidence.

Automotive regulation expert Ben Gardner of Pinsent Masons, the law firm behind Out-Law.com, said the UK was a key market for many European car manufacturers.

“There should be a willingness for both the UK and the EU to agree some form of equivalence between their respective certification agencies going forward. Whilst the UK is likely to transpose the EU requirements into UK law, there is a risk that the EU may cease to see the VCA as being able to approve vehicles for use on the continent which may mean that both the VCA and an EU recognised agency will need to approve UK vehicles. This may actually increase red tape for manufacturers instead of reducing it,” Gardner said.

“This is just one of many matters which will need to be resolved in order for the UK automotive sector to remain competitive post-Brexit. Other questions will, for example, remain around how ‘just in time’ supply chains will be able to continue unless frictionless trade between the UK and Europe can be maintained,” Gardner said.

The changes to the approval scheme will have no impact on motorists.

The guidance is the latest in a series of technical notices designed to give an idea of the potential impact of a no-deal Brexit on businesses and consumers.