Currently reading: CBI chief warns of UK car production dangers if no customs agreement is made with EU
UK's car industry requires continued "frictionless trade" in order to prosper, says Paul Dreschler

The head of the Confederation of British Industry (CBI) has warned that the UK’s car industry would suffer if a customs union agreement is not made with the European Union (EU) when Brexit happens

"If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct," Paul Dreschler said, talking to the BBC

Dreschler added that there is “zero evidence” that non-EU trade deals would help in any way, “It’s a myth,” he said. 

Brexit has long been described as a threat to the UK’s car industry, with the Society of Motor Manufacturers & Traders (SMMT) claiming last year that damage has already been done, with domestic demand for UK-built cars falling across multiple months since the vote to leave the EU in June 2016.

Production figures recovered in April 2018, although 2018 so far remains down on the same period of 2017 by 3.9%. 

“Real frictionless trade” is needed to prevent further damage to the UK’s car industry, said Dreschler, adding that the delays and increased costs from trade tariffs would be particularly damaging. 

He said: ”We already know that hundreds of millions have been invested by UK pharmaceutical and finance companies to create continuity post a worse-case Brexit scenario. What could we have done with that money?"

A spokesman from the Government's Department for Exiting the European Union said: "We are focused on delivering a Brexit that works for the whole of the UK, including businesses across the economy.

"We have laid out our approach to our withdrawal and future relationship with the EU in 14 detailed papers we published last summer, numerous speeches given by the Prime Minister and cabinet ministers and the technical notes and slides we published in recent weeks. 

"We will soon publish a White Paper with detailed explanations of our ambition for a future relationship with the EU, building on the positions set out by the Prime Minister."

Read more:

Global NCAP chief: 'UK will lose car safety regulations influence post-Brexit'

Brexit already damaging automotive industry, says SMMT president

SMMT issues overseas demand warning as exports hit record levels

UK car manufacturing falls for seventh consecutive month in February

Brexit: what do the car makers think?

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max1e6 14 June 2018

Respect the vote Paul

""If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct," Paul Dreschler said, talking to the BBC

This country will become extinct if we don't leave the EU right now.

max1e6 14 June 2018

Dreschler the Remainer

Mr Dreschler is overstating the issues.

Import customs checks can be done very quickly and very cheaply.

"Dreschler added that there is “zero evidence” that non-EU trade deals would help in any way, “It’s a myth,” he said. "

How does Mr Dreschler know what is going to happen after non-EU trade deals have been signed? Has he asked every potential car customer what they plan to buy in the future?!

 

aatbloke 14 June 2018

max1e6 wrote:

max1e6 wrote:

Mr Dreschler is overstating the issues.

Import customs checks can be done very quickly and very cheaply.

"Dreschler added that there is “zero evidence” that non-EU trade deals would help in any way, “It’s a myth,” he said. "

How does Mr Dreschler know what is going to happen after non-EU trade deals have been signed? Has he asked every potential car customer what they plan to buy in the future?!

 

What do you have to offer, as a market of 65 million people, that's more favourable to other potential trade partners than a market of 500 million?

 

ersatz 13 June 2018

Are all the cars in the world

Are all the cars in the world only made in the EU? 

No - but it is by far the largest market for UK made cars 

It's odd, I thought the US, Japan and Korea made cars, too.

Yes - startlingly you are correct. Just happens to be entirely irrelevant - this is about selling the cars made here, not buying cars from Korea Bazzer.

"If we do not have a customs union, there are sectors of manufacturing society in the UK which risk becoming extinct."  Does the US, Japan and Korea have a customs union with the EU?

Well funnily enough, Japan is in the process of agreeing free trade with EU (which we will be cut out of).  This whole sorry mess threatens to ruin the remaining industry in this country, whilst people who know better (e.g. the CBI) warn us over & over again, and people who don't know bang on about fishing, sovereignty (which we already had) and passport colour. And Bazzer, anecdotes generated by knocking on doorsteps gives you no more of an insight into why people voted (and it was not the majority of people who could vote, just the majority who did vote) than anyone else. We all talked to other people  - many I know were rather pro-Europe but sure as hell would never vote in a manner that Cameron told them to do - so did not turn out.

Bazzer 14 June 2018

ersatz

You clearly don't understand the word 'sovereignty'.  A sovereign state is NOT one if it doesn't have:

Control over its judicial system

Control over its population level

Control overits trade arrangements.

 

Sovereign state:

"A sovereign state is, in international law, a nonphysical juridical entity that is represented by ONE centralized government that has sovereignty over a geographic area. International law defines sovereign states as having a permanent population, defined territory, ONE government, and the capacity to enter into relations with other sovereign states. It is also normally understood that a sovereign state is neither dependent on, nor subjected to, any other power or state."

Bazzer 14 June 2018

ersatz

Some more errors on your part:

I DID say "those that voted".

Your anecdotes - worthless.  They are just the people you know.  I canvassed a large area.

"Cars made here".  No.