Currently reading: EU motor industry leaders unite against ‘no-deal’ Brexit
Organisations representing vehicle and parts makers across EU and UK call for no-deal to be ruled out to avoid “severe” consequences
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2 mins read
22 September 2019

The European Union’s leading automotive industry bodies have joined forces to stress the “catastrophic” impact a potential ‘no-deal’ Brexit will have on the sector. 

With five weeks to go before the UK is due to leave the European Union, industry chiefs from bodies such as the European Automobile Manufacturers Association (ACEA), Committee of French Automobile Manufacturers (CCFA), the German Association of the Automotive Industry (VDA) and the UK’s own Society of Motor Manufacturers and Traders have all released statements. 

There were a total of 23 signatories from numerous industry bodies from countries across the European Union, many stating their concern about the lack of frictionless trade, customs delays harming the industry’s just-in-time operating model and the potential for WTO tariffs to add £5bn in tariffs on UK exports to the EU.

Car industry chief warns Boris Johnson over no-deal Brexit

Benhard Mattes, VDA president, said “The United Kingdom is a fully integrated player in the value chain of the German Automotive Industry. More than 100 production facilities as well as research and development located in the UK prove our commitment to the UK-market as a number one market in the EU. 

In the view of the German automotive industry, therefore, everything has to be done to maintain the free movement of goods, of services, the freedom of capital and the freedom of movement for workers between the UK and the EU."

SMMT chief executive Mike Hawes reiterated his warning that no-deal would “an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage.

He also said that “UK and EU negotiators have a responsibility to work together to agree a deal or risk destroying this vital pillar of our economies.”

Sigrid de Vries, Secretary General for the European Association of Automotive Suppliers, highlighted the intense integration amongst the UK and European parts industry. 

“A single vehicles consists of around 30,000 parts, many of which cross borders multiple times. Frictionless and tariff-free trade, as well as regulatory certainty, is vital. Brexit has a negative effect on all these aspects.” 

The SMMT’s own report suggests delays to the arrival of components causing production stoppage would cost the UK £50,000 a minute. That, combined with significant tariffs, would very likely raise prices for consumers with many companies likely to struggle to absorb the costs. 

Read more:

Analysis: Brexit and the UK car industry

No-deal Brexit could cost UK carmakers billions in emissions fines

Vauxhall boss: firm could benefit from a hard Brexit

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voyager12 23 September 2019

Too little, too late!

Remarkable that the Tory Party lost touch with what's supposed to be their backbone: entrepreneurs. Brexit is already going to hurt British business, a No-Deal Brexit will be disastrous. Then again, besides the SMMT's cris de coeurs I heard from time to time, there was obviously no large-scale mobilizing of business interests in and around the UK automotive industry going on. Weird. Now it's way too late.

gavsmit 23 September 2019

Poker

Regardless of what people voted for BREXIT, we are where we are, and the UK is dealing with people that are playing hard ball and want to humiliate and punish the UK for leaving to put off other member states.

A decent deal would be great, so the possibility of a hard exit must be used as the UK's ultimate bargaining tool to achieve that (the EU know that a hard exit will hurt them badly). So it's disappointing that so many politicians, business people and legal figures are determined to remove that crucial ace up our sleeve.

No wonder this will all probably end in tears - it's like trying to bluff a weak hand in poker after laying all your cards on the table.

jagdavey 23 September 2019

Exactly, under EU rule we..............

Under EU rule we lost MG Rover, all Ford car & van production, Peugeot closed Ryton, most of Vauxhall production, LDV vans..................the continental based manufacturers just rubbed their hands & pumped up their exports to the UK taking advantage of a strong Pound/weak Euro. Now that the Pounds collapsed it's hurting them & they are getting really concerned about it. After an hard Brexit the Europeans will have to rethink their export strategy, BMW & Mercedes will obviously sell even more SUV's made in America in the UK, or source their saloons from South Africa. Ford will continue selling their Transits because they are sourced from Turkey, outside the EU.

drivenfromthere... 23 September 2019

EU rule?

jagdavey wrote:

Under EU rule we lost MG Rover, all Ford car & van production, Peugeot closed Ryton, most of Vauxhall production, LDV vans..................the continental based manufacturers just rubbed their hands & pumped up their exports to the UK taking advantage of a strong Pound/weak Euro. Now that the Pounds collapsed it's hurting them & they are getting really concerned about it. After an hard Brexit the Europeans will have to rethink their export strategy, BMW & Mercedes will obviously sell even more SUV's made in America in the UK, or source their saloons from South Africa. Ford will continue selling their Transits because they are sourced from Turkey, outside the EU.

 

I would love to know what “EU rule” is when we accepted 95% of all rules negotiated and in the majority of cases pushed them through.....or led them...we do use a Vito every now and then and have stopped certain rules as we feel would not be beneficial.

 

But to say “under EU rule” is just a Daily Mail or Daily Express soundbite.

 

Just cant stand all this nonsense banded about. 

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