The UK motor industry has said that a no-deal Brexit would leave British car manufacturers ‘closer to the cliff edge’ and would result in a £5bn bill for the sector.

The Society of Motor Manufacturers and Traders’ Chief Executive Chief Executive Mike Hawes issued a statement in a week when two of British motoring’s biggest names, Mini and Jaguar, admitted that they were closing factories as a counter-measure to the effects of Brexit.

Jaguar has moved to a three-day week at the Castle Bromwich factory, whilst BMW announced that they were shutting their Oxford Mini factory for ‘several weeks’ immediately after Brexit.

The industry is worried that significant tariffs in the wake of Brexit could make UK-built cars prohibitive to the export market.

“Tariffs alone should be enough to focus minds on sealing a withdrawal agreement between the EU and UK but the potential impact of 'no-deal' means the stakes for the automotive sector are far higher,' SMMT chief executive Mike Hawes said in a statement.

“Without a deal, there can be no transition period and the complex issues surrounding tariffs and trade, customs, regulation and access to talent will remain unresolved.

“Our industry is deeply integrated across both sides of the Channel so we look to negotiators to recognise the needs of the whole European automotive industry and act swiftly to avoid disruption and damage to one of our most valuable shared economic assets.”

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