Motor Industry Relief At Brexit Deal

Mon 28th Dec 2020

British motoring manufacturers will be optimistic of a more profitable 2021 following the news that the UK and EU have agreed a post-Brexit trade deal.

Boris Johnson’s government concluded the deal just before Christmas Day to complete years of backwards and forwards between negotiators across the English Channel and bring an end to any uncertainty on how motor manufacturers would trade across borders.

News of a deal will be a small light at the end of what has been a tumultuous year for an industry hit hard by pandemic lockdowns, coming to terms with changes to electric vehicle and the unknown of whether WTO tariffs would be introduced.

“We welcome today’s agreement of a new EU-UK trading agreement, which provides a platform for our future relationship,” said Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders.

“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.

“A phase-in period is critical to help businesses on both sides adapt and efforts should now be sustained to ensure seamless implementation, with tariff-free trade fully accessible and effective for all from day one.”

It is hoped that the deal can help secure jobs across many factories, particularly as companies such as Toyota and Nissan were refusing to guarantee the futures of the workforce.