Consumers Will Pay £5bn For No-Deal Brexit Says Euro Car Giants

Mon 23rd Sep 2019

Europe’s biggest car manufacturers have warned that a no-deal Brexit will be ‘catastrophic’ for the industry and would cause ‘irreversible’ damage.

In a joint statement between the UK’s Society of Motor Manufacturers (SMMT) and European Automobile Manufacturers’ Association (ACEA), industry leaders have claimed that WTO tariffs will cost consumers an additional £5 billion, a scenario which could arise if the UK crashes out of the EU.

Mike Hawes, SMMT chief executive, said, “European Automotive is deeply integrated and the benefits of free and frictionless trade have helped our sector become one of Europe’s most valuable assets, delivering billions to economies and supporting millions of livelihoods across the EU.

“A ‘no deal’ Brexit would have an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage. UK and EU negotiators have a responsibility to work together to agree a deal or risk destroying this vital pillar of our economies.”

The complexities of Britain’s exit from the European Union are believed to have already had an effect on UK shores, with Honda closing its Swindon factory with the loss of 3,500 jobs, while Nissan pulled the X-Trail from their Sunderland plant, despite previously pledging to build it in the north east.

While the UK will be at the forefront of any issues, motor bosses are keen to express that it will be a problem which will affect the whole of the continent.

Christian Peugeot, CCFA president, said, “Brexit is not just a British problem, we are all concerned in the European automotive industry, and even further. Be it as exporters to the UK market or producers locally, which we are both, we will inevitably be negatively affected.”