The Society of Motor Manufacturers and Traders (SMMT) has urged MPs to think about the huge negative impact a no-deal Brexit could have on the UK car industry.
Photo: Dunk / Flickr. Licence: CC BY
Photo: Dunk / Flickr. Licence: CC BY
According to Mike Hawes, SMMT chief executive: “Brexit is already causing us damage – in output, costs and jobs, but this does not compare with the catastrophic consequences of being cut adrift from our biggest trading partner overnight.
“The Just-in-Time nature of automotive means the impact of ‘no deal’ will be felt, not in months or weeks, but hours. A managed ‘no deal’ is a fantasy – we would face immediate delivery shortages, disruption, additional costs and uncertainty. Both government and parliament have a responsibility to take ‘no deal’ off the table or risk destroying this vital UK industry.”
The SMMT’s research indicates the potentially disastrous effects of a no-deal Brexit. Import tariffs alone, it says, could push up the list price of cars imported to the UK from the continent by an average of £1500 if brands and retailers could not absorb the costs elsewhere.
The warning came just hours before the historic defeat of Prime Minister Theresa May’s Brexit deal, which was rejected by 230 votes. Her government faces a vote of no confidence later today, creating even more uncertainty for manufacturers around the outcome of the negotiations and how Brexit will proceed.
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