Automakers will be studying the fine print of the deal to see how it affects “rules of origin,” which specify that about 55 percent of the overall value of cars is produced locally to avoid tariffs.
ACEA said it cannot make a full assessment of the implications of the deal until all the technical details have been made public.
“Only at that stage will it be clear if the deal fully reflects the interests of EU auto manufacturers and their supply chains,” it said.
Major challenges still lie ahead because trade in goods will be heavily impacted by barriers to trade because of new customs procedures that will be introduced on Jan. 1, ACEA said.
About 3 million vehicles worth 54 billion euros ($66 billion) are traded between the EU and the U.K. annually and cross-Channel trade in automotive parts accounts for almost 14 billion euros, the group said.
Ford Motor Co. said the accord will provide stability as the industry transitions to new technologies.
“It is now important to understand the detailed rules of origin that will apply and to create as smooth a transition as possible by maximizing flexibility as businesses adjust to the new trading environment,” Ford of Europe President Stuart Rowley said in an emailed statement.
The UK auto industry association, SMMT, called for a phase-in period to allow businesses adapt to the new rules. “We await the details to ensure this deal works for all automotive goods and technologies, including specifics on rules of origin and future regulatory co-operation,” SMMT CEO Mike Hawes said in a statement.
Bloomberg and Reuters contributed to this report