Currently reading: UK car industry: no-deal Brexit could have 'devastating impact'
Industry chiefs urge government to secure long-term trade deal after survey reveals car business's fears
James Attwood, digital editor
News
3 mins read
27 November 2018

Nearly three-quarters of UK automotive businesses believe that a ‘no-deal’ Brexit would harm their future viability – with the head of the Society of Motor Manufacturers and Traders again warning that failure to leave the European Union without an agreement would lead to plants being shut and jobs lost.

Prime Minister Theresa May and European Union leaders have reached a withdrawal agreement on the terms of Britain’s departure from the EU on March 29, 2019, which includes a 21-month ‘transition period’.

They have also agreed a statement on the future relationship, which will be used to guide the creation of a legally binding treaty. Those agreements will be voted on by the UK parliament on 11 December and, if not approved, could still lead to Britain exiting the EU without a deal. While the SMMT has welcomed that draft agreement, the lack of a long-term agreement remains a concern.

Speaking at the SMMT’s annual dinner, chief executive Mike Hawes said that Brexit “remained the biggest challenge for all of us”, and was already harming investment in “technology, people and our future.”

Hawes added: “We need a deal. No deal would be catastrophic. Plants will close. Jobs will be lost.”

While Hawes said the Withdrawal Agreement’s transition period would “step us back from the cliff edge”, there had been no firm agreement on the future trade framework beyond that. 

“We need an ambitious future relationship,” he said. “One that replicates the benefits of the customs union and the single market. No tariffs, no quotas, no rules of origin. No regulatory divergence. No border checks, and frictionless trade.”

Adding that any deal must be “ambitious”, Hawes added that: “Leaving is not what we wanted. For us, Brexit is about damage limitation. There is no ‘Brexit dividend’.”

Tony Walker, the outgoing president of the SMMT and head of Toyota Motor Europe’s London office, added that: “Crashing out of the EU would have immediate and devastating impacts, with border chaos disrupting the 'Just in Time' basis on which our business depends. Disruption could last for weeks – even months.”

Survey reveals Industry fears

The SMMT’s comments were backed up by the results of the SMMT’s Brexit survey, with 74.1% of automotive companies that had UK operations saying a ‘no-deal’ Brexit would damage their business, compared to 8.39% who felt it would have a positive or very positive effect. Similarly, 68.53% of firms felt failure to reach a deal would have a negative or very negative impact on their profitability. 

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The survey also found that 55.55% of firms said the Brexit process had already had a negative or very negative impact on their business. Nearly half of all businesses also feared a no-deal Brexit could harm their ability to maintain their existing workforce.

Read more

UK automotive industry welcomes draft Brexit deal

Toyota: no-deal Brexit could halt UK production for months

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Herald 28 November 2018

@alicetaylor ...

...  my favourite post on this topic.

Spanner 28 November 2018

Probably the most relevant

Probably the most relevant quote too

Herald wrote:

...  my favourite post on this topic.

max1e6 27 November 2018

Remainer propaganda

I have been waiting for Autocar's latest edition of its Remainer propaganda.

Lord Heseltine receives massive EU subsidies for his land that are paid for by the British taxpayer. That is why his Autocar publication has been ordered to try and frighten us into staying in the EU.

 

scotty5 27 November 2018

Paid to produce nothing

max1e6 wrote:

I have been waiting for Autocar's latest edition of its Remainer propaganda.

Lord Heseltine receives massive EU subsidies for his land that are paid for by the British taxpayer. That is why his Autocar publication has been ordered to try and frighten us into staying in the EU.

Somehow doubt it but you do make a good point.

We give money to the EU and the EU give it back to landowners to produce nothing. There was a time when landowners would be penalised if they produced goods. The opposite was true too - subsidies given to produce products we didn't need thus creating an abundance of food that was then destroyed. Who remembers the butter mountain?  (at least they did something right by offering it free to pensioners rather than destroying it.)  No wonder the farmers want to remain in the EU...  crazy economics.

Rodester 27 November 2018

max1e6 wrote:

max1e6 wrote:

I have been waiting for Autocar's latest edition of its Remainer propaganda.

Lord Heseltine receives massive EU subsidies for his land that are paid for by the British taxpayer. That is why his Autocar publication has been ordered to try and frighten us into staying in the EU.

 

How do you feel about the Royal family?

Peter Cavellini 28 November 2018

Assumption.....

max1e6@, I’m assuming your minted, a lot of Wonga in your Safe, what about the rest of us?, when and if Brexit happens it won’t be like changing a Lightbulb ,it’ll be an indefinite time period, and I’m sure many of us will struggle a bit more to pay our Bills, the Nirvanna you preach that it’ll get better, we’ll be a better more prosperous Nation is all conjecture just like staying is, but, at least it’s a known, I’m not happy with the leave idea, what are my Sons future?, both are in College, one is special needs ( what’ll happen to his support) , Mrs May goes into battle with Parliament soon and the conclusion by the media is it’ll be a Bloodbath for her, they will reject it, what does she do then?....resign??

max1e6 27 November 2018

Economic colonialism

If the SMMT is against BREXIT then we should boycott cars made by SMMT members.

'Tony Walker, the outgoing president of the SMMT and head of Toyota Motor Europe’s London office, added that: “Crashing out of the EU would have immediate and devastating impacts, with border chaos disrupting the 'Just in Time' basis on which our business depends. Disruption could last for weeks – even months.”

Toyota doesn't seem to care about the people of this country. We should definitely boycott Toyota.

Rodester 27 November 2018

max1e6 wrote:

max1e6 wrote:

If the SMMT is against BREXIT then we should boycott cars made by SMMT members.

'Tony Walker, the outgoing president of the SMMT and head of Toyota Motor Europe’s London office, added that: “Crashing out of the EU would have immediate and devastating impacts, with border chaos disrupting the 'Just in Time' basis on which our business depends. Disruption could last for weeks – even months.”

Toyota doesn't seem to care about the people of this country. We should definitely boycott Toyota.

Will I have to sell my Avensis then?

max1e6 27 November 2018

Rodester wrote:

Rodester wrote:

Will I have to sell my Avensis then?

I want all of the Japanese cars in the UK to be scrapped. They are ugly things.

Rodester 27 November 2018

max1e6 wrote:

max1e6 wrote:

Rodester wrote:

Will I have to sell my Avensis then?

I want all of the Japanese cars in the UK to be scrapped. They are ugly things.

Oh.  Sounds like a plan and that's going to be a lot of cars.  How do you propose we could go about this? 

What are views on ugly people?

 

scotty5 27 November 2018

Can't see the forrest for the trees.

max1e6 wrote:

If the SMMT is against BREXIT then we should boycott cars made by SMMT members.

'Tony Walker, the outgoing president of the SMMT and head of Toyota Motor Europe’s London office, added that: “Crashing out of the EU would have immediate and devastating impacts, with border chaos disrupting the 'Just in Time' basis on which our business depends. Disruption could last for weeks – even months.”

Toyota doesn't seem to care about the people of this country. We should definitely boycott Toyota.

I voted leave and I disagree with many things the SMMT have said. There's only one slight problem I see with your plan...  boycott buying cars made by SMMT members and you'll make thousands of UK employees redundant.

I voted leave for different reasons than some of the nutters running the leave campaign voted for. My goal was to invest in our industry, not destroy it.