The Society of Motor Manufacturers and Traders has stressed the need for the UK to stay in Europe's single market following the EU referendum result

The UK motor industry faces the threat of a £4.5 billion car tariff if the country does not stay in a single EU market, according to the Society of Motor Manufacturers and Traders’ president Gareth Jones.

Analysis from the SMMT suggests that EU tariffs on cars could add an annual £2.7bn to imports and £1.8bn to exports. The UK motor industry body also said tariffs could push up the list price of cars imported to the UK from the Continent by an average of £1500 if brands and retailers were unable absorb the extra costs. That figure is based on a 10% standard tariff on cars exported to and imported from the EU.

Speaking at the SMMT’s centenary annual dinner, Jones said its members – car manufacturers and traders – had told the SMMT what it wanted: ”Membership of the single market, consistency in regulations, access to global talent and global markets and the ability to trade abroad free from barriers and red tape.”

Jones admitted it wouldn’t be an easy task but said the SMMT will continue to make this case to the UK government. “We have the strength of our successful sector behind us and will ensure your voice is heard,” he told the audience at the annual dinner.

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He outlined the current success of UK production for the automotive industry, siting a new record for exports. However, he warned that this was the result of multi-billion-pound investment decisions made years before the EU referendum and could not be taken for granted.

He said: “We need to create the right conditions for future competitiveness, for developing skills and securing the strength of our economy by investing in R&D and enabling new technologies to be developed here in the UK.

"The challenge now is to make a success of the new future. We want a strong UK economy and we want to see the UK's influence in the world enhanced. But this cannot be at the expense of jobs, growth or being an open, welcoming trading nation.”

Commenting on the strength of the relationship between government and industry, Jones said the government had put industrial strategy at the heart of business but added that it faces its toughest challenge in leaving the EU. “We must make the right decisions: on trade, on regulations and on business competitiveness," he said.

UK car registrations in October show modest growth

The SMMT dinner was also used to launch a report called the Digitalisation of Automotive Manufacturing in the UK. It suggests that digital manufacturing through technologies such as 3D printing and artificial intelligence could significantly boost industry turnover. Produced by KPMG, the report predicts it could add £6.9bn annually to industry turnover, including a £2.6bn supply chain boost, amounting to a cumulative total of £74bn by 2035.

Jones said: “The so-called fourth industrial revolution will be a step change in manufacturing, with production lines developing more over the next five to 10 years than in the past half century.”

The dinner marked the end of Jones's two-year tenure as SMMT president. He retires at the end of this year and his successor will be Tony Walker, deputy managing director of Toyota Motor Manufacturing UK and boss of Toyota Motor Europe, London.

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Comments
11

29 November 2016
Brand new BMW's going up by £1,500. If only the forgotten working class and people on minimum wage (amongst others) thought about this before voting to leave.
I hope they're happy now they can only afford new VW's

 

Hydrogen cars just went POP

3 December 2016
that vote was the best thing 52% of the uk population has ever done. The EU was screwing itself and was taking us with it.

29 November 2016
PAh! tariff free Qashqai, qashqais for everyone, come and get em, pile em high, who needs a polluting dodgy Golf? who wants an 'ultimate driving machine' on our overcrowded broken up roads? CR-V's, Jaguars if you want swanky, big thumping Range Rovers, Astra's for the kids and the common folk, Mini's for the ladies... don't pay Merkel her pound of flesh, buy British!!

29 November 2016
The germans need to sell their cars. Just as much as we want to buy them. If tariffs are placed on these european cars, then less will be sold. Simple.

Shooting themselves in the foot springs to mind.

If they want everyone driving around in a Jaguar XE's and Lexus IS' instead of the over rated 3 series or or boring A4. They need to crack on and slap a big tariff on these cars.

Also, The Apprentice, Mini's are made by BMW and are a German made vehicle.

29 November 2016
AlphaAlpha274 wrote:

The germans need to sell their cars. Just as much as we want to buy them. If tariffs are placed on these european cars, then less will be sold. Simple.

Shooting themselves in the foot springs to mind.

If they want everyone driving around in a Jaguar XE's and Lexus IS' instead of the over rated 3 series or or boring A4. They need to crack on and slap a big tariff on these cars.

Also, The Apprentice, Mini's are made by BMW and are a German made vehicle.

Minis are made in the UK at Oxford not Germany.

30 November 2016
AlphaAlpha274 wrote:

The germans need to sell their cars. Just as much as we want to buy them. If tariffs are placed on these european cars, then less will be sold. Simple.

Shooting themselves in the foot springs to mind.

If they want everyone driving around in a Jaguar XE's and Lexus IS' instead of the over rated 3 series or or boring A4. They need to crack on and slap a big tariff on these cars.

Also, The Apprentice, Mini's are made by BMW and are a German made vehicle.

Those damn Germans again. They are to blame for everything. Damn them for propping up the EU economy for years and taking 10000's of refugees. No need to worry though, with all that money the NHS will be saving those in the UK will at least be the healthiest post brexit. Healthy and safe on your own little island with no mates.

30 November 2016
Marc wrote:
AlphaAlpha274 wrote:

The germans need to sell their cars. Just as much as we want to buy them. If tariffs are placed on these european cars, then less will be sold. Simple.

Shooting themselves in the foot springs to mind.

If they want everyone driving around in a Jaguar XE's and Lexus IS' instead of the over rated 3 series or or boring A4. They need to crack on and slap a big tariff on these cars.

Also, The Apprentice, Mini's are made by BMW and are a German made vehicle.

Those damn Germans again. They are to blame for everything. Damn them for propping up the EU economy for years and taking 10000's of refugees. No need to worry though, with all that money the NHS will be saving those in the UK will at least be the healthiest post brexit. Healthy and safe on your own little island with no mates.

propping up the EU economy for their own good, just ask Greece. Little island, it's fairy big actually and supports at least 60,000,000 people.

 

Hydrogen cars just went POP

30 November 2016
xxxx wrote:
Marc wrote:
AlphaAlpha274 wrote:

The germans need to sell their cars. Just as much as we want to buy them. If tariffs are placed on these european cars, then less will be sold. Simple.

Shooting themselves in the foot springs to mind.

If they want everyone driving around in a Jaguar XE's and Lexus IS' instead of the over rated 3 series or or boring A4. They need to crack on and slap a big tariff on these cars.

Also, The Apprentice, Mini's are made by BMW and are a German made vehicle.

Those damn Germans again. They are to blame for everything. Damn them for propping up the EU economy for years and taking 10000's of refugees. No need to worry though, with all that money the NHS will be saving those in the UK will at least be the healthiest post brexit. Healthy and safe on your own little island with no mates.

propping up the EU economy for their own good, just ask Greece. Little island, it's fairy big actually and supports at least 60,000,000 people.

It is quite big, it took me 3 whole days to cycle from the bottom to the top once. Didn't see many fairies though.

3 December 2016
Clearly you didn't look into a mirror then otherwise you would have seen the biggest ever.

30 November 2016
WHEN THE POUND WAS NEARLY 1.5 TO THE EURO CARS DID NOT COME DOWN EITHER,BUT THEY SOON WANT TO PUT THEM UP JUST LIKE THE UTILITY PROVIDERS.tHE BAVARIANS ARE WORRIED TO BITS ABOUT IMPORT DUTIES THEY HAVE ABOUT 38% MARKET SHARE IN THE UK ,APPARENTLY WE ARE THE LARGEST MARKET WHICH SURPRISED ME.
IF THE eEU TRY TO TREAT US LIKE TRAITORS WE SHOULD THREATEN 30 % IMPORT DUTY ON CARS, CHEESE,FOOD WINE CHOCIES ETC AND GIVE HALF BACK TO PROMOTE UK ONSHORING AND STOP THE WASTE OF CAR BODIES BENTLEY AND ROLLS COMING FROM GERMANY TO UK.CHOCIE NOW FROM POLAND SINCE THE FACTORIE SIN YORK CLOSED ETC.sORRY BUT THE CORPORATES JUST APPEAR TO RAPE THE UK,SO SORRY FOR GOING ON A PADDY.

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