The average cost of a UK-built car imported to the EU would increase by an average of £2700 as a result of new tariffs caused by a no-deal Brexit, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT, the UK automotive industry body and a vocal critic of Brexit, has today called on the UK’s Brexit negotiators to rule out a no-deal Brexit completely to avoid such tariffs being imposed, and to protect UK car production and jobs.
The tariffs – 10% of a car's import/export value and automatically applicable to all EU/UK imports/exports in the event of a no-deal Brexit – would affect “demand, profitability and jobs” in the UK if passed onto buyers of British-built cars in the EU, the SMMT said.
Conversely, the average cost of an EU-built car sold in the UK would increase by around £1500-£1700 if there is no deal, according to the SMMT’s own calculations. The total cost of tariffs across the UK and EU would be £5 billion per year for cars and light commercial vehicles, the SMMT claimed.
The SMMT is meeting with EU representatives in Brussels to highlight the importance of the EU and UK car industries remaining fully integrated, and for a seamless Brexit that maintains the status quo.
Yesterday, Mini confirmed it would move its month-long summer shutdown forward in 2019 to 1 April, two days after the UK is scheduled to exit the EU. This is being done “to minimise the risk of any possible short-term parts supply disruption in the event of a no-deal Brexit”.
Earlier this week, Jaguar Land Rover announced its Castle Bromwich factory would be moving to a three-day week until Christmas following the uncertainty of Brexit and a slump in demand for the diesel engines that power many of the Jaguar XE, Jaguar XF and Jaguar XJ saloons built there, in addition to the Jaguar F-Type sports car.
