Organisations representing vehicle and parts makers across EU and UK call for no-deal to be ruled out to avoid “severe” consequences
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.”

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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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Comments
13

23 September 2019

What’s taken them so long?

The EU referendum was 3 years ago and we are possible just weeks away from crashing out.

It would have been better if the industry had done more to counter the misinformation about leaving the single market a long time ago. Crashing out of the EU will kill the UK car industry as we know it.

23 September 2019
scrap wrote:

What’s taken them so long?

The EU referendum was 3 years ago and we are possible just weeks away from crashing out.

It would have been better if the industry had done more to counter the misinformation about leaving the single market a long time ago. Crashing out of the EU will kill the UK car industry as we know it.

 

Probably keeping out of it because you know how whiney the brexiters are. look what happened when Barak Obahama made a small comment - they got their knickers in a twist about foreigners "interfering" but were quite happy and slient when Trump interferes all the time.

23 September 2019
Rtfazeberdee wrote:

scrap wrote:

What’s taken them so long?

The EU referendum was 3 years ago and we are possible just weeks away from crashing out.

It would have been better if the industry had done more to counter the misinformation about leaving the single market a long time ago. Crashing out of the EU will kill the UK car industry as we know it.

Probably keeping out of it because you know how whiney the brexiters are. look what happened when Barak Obahama made a small comment - they got their knickers in a twist about foreigners "interfering" but were quite happy and slient when Trump interferes all the time.

Not sure a comment from an American president before another Nations referendum which alluded to a threat can ever be classed as 'small'.

23 September 2019
scrap wrote:

What’s taken them so long?

The EU referendum was 3 years ago and we are possible just weeks away from crashing out.

It would have been better if the industry had done more to counter the misinformation about leaving the single market a long time ago. Crashing out of the EU will kill the UK car industry as we know it.

 

"crashing out" lol 

What a mug you are.

24 September 2019
Luap wrote:

"crashing out" lol 

What a mug you are.

 

Hmm... best let the grown ups take it from here. You are out of your depth.

23 September 2019

No version of Brexit is good for Britain and it is the SMEs who will be worst affected.

 

https://spectrum.ieee.org/at-work/tech-careers/brexit-threatens-a-steep-loss-of-jobs-for-ukbased-tech-companies

23 September 2019

The Germans & French are suddenly panicking about the aftermath of a no-deal Brexit, when Brits stop or put off buying new cars. Countries like Germany that rely on exports will be severely affected, & less or even no sales to the UK will result in hundreds of thousands of redundancies in their industry. (Just like we had in the UK in the last 3 decades, when Europe didn't help us!) The results of the British consumer's power can be seen in the Thomas Cook bankruptcy, when Brits stop spending, everything becomes vulnerable. Yes the remnants of the British car industry will probably go under, but we barely make 1.25 million cars a year, the Germans make over 5 million in comparison, even the Spanish make over 2 million vehicles! We are not a true exporting nation, so it's not gonna affect us, is it???? It'll make imported cars more expensive because of 10% import tarrifs, but hang on if the average car costs 20,000 thats an extra 3 billion a year that will role into the Governments coffers. Lots of spending money for Boris.

23 September 2019

Actually they're not panicking, they just regret the waste, stupidity and disruption. You honestly think that they haven't mitigated the impacts - unlike our industry? The situation is more complicated than you've protrayed it to be. We need our foreign export trade to create foreign income from which we as a country use to pay for our imports. One thing people always forget is that it isn't us against them, we are part of the EU (we are the EU) and as such we build cars, satelites, aircraft etc. with them. Everything that we manufacture from food, to aircraft requires frictionless borders and just disrupting that by requiring paperwork, checks for rules of origin or tarrifs etc. creates extra costs which render those industries unviable. Small island, very few natural resources (tarrifs paid for raw/part finished materials/goods coming in and then again for finished product going out to customer in another country, renders us uncompetitive); get it? It doesn't matter about the import tarrifs if nobody has the money to buy them because the economy as a whole has tanked and the pound with it! Also you seem quite blase about the loss of roughly 300000 jobs. Quite funny how all Leavers have voted themselves a massive pay cut - doesn't matter if you're a pensioner either as the value of your pension and investments will drop with the value of the pound as well as the stagnation of the wider economy! We seriously lack either education, common sense or the ability to step back see the bigger picture and join the dots in this country. Hope the gullible fools wake up before it's too late and Bojo and his cronies make an absolute killing at our expense...

23 September 2019
wtpelzer wrote:

.. Also you seem quite blase about the loss of roughly 300000 jobs. Quite funny how all Leavers have voted themselves a massive pay cut -......as the value of your pension and investments will drop with the value of the pound as well as the stagnation of the wider economy! We seriously lack either education, common sense or the ability to step back see the bigger picture and join the dots in this country. Hope the gullible fools wake up before it's too late and Bojo and his cronies make an absolute killing at our expense...

I've never seen so many made-up statistics, forecasts and insults made up by an amateur on the spot before.

Shame you didn't warn us about FORD pulling out of UK car and van production during EU rule or the 'Cars for Cheese' deal by French and Germans.  I reckon those 2 cost 400,000 jobs.

See it's easy this Top Trumps game

23 September 2019

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.

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