Brexit report: No deal a ‘fundamental risk’ to UK automotive
The government’s Exiting the European Union Committee report has found that a no-deal exit from the EU would be “the most economically damaging outcome for the UK”.
Committee MPs have warned that a no deal scenario would add £2,700 to the cost of British-made cars in EU countries, putting the automotive sector at a “competitive disadvantage”.
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The Society for Motor Manufacturers and Traders (SMMT), has been clear about the consequences of no deal for automotive, saying that planning for a no deal outcome has already “had a chilling effect on investment in the sector”. has always been clear about the consequences of no deal for automotive, saying that planning for a no deal outcome has already “had a chilling effect on investment in the sector”.
‘No deal’ must be avoided at all costs or risk irreversible damage to this vital sector.Mike Hawes
Mike Hawes, SMMT chief executive said: “UK and EU automotive industries are deeply integrated and it is vital we maintain all the conditions that have made us globally competitive. As echoed in the report, at the very least, this means tariff-free trade, frictionless borders. ‘No deal’ must be avoided at all costs or risk irreversible damage to this vital sector.”
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In June, the SMMT warned that no deal could cost UK automotive up to £50,000 per minute, and has consistently highlighted the importance of the current integration and trade agreement that has allowed the sector to flourish for more than a decade.
The UK automotive industry is the UK’s largest export sector, accounting for around 14% of total exports. It employs 168,000 people, with more than 30 manufacturers building 70 models of vehicle in the UK. You can find more industry news from the SMMT here.