Automotive group raises further Brexit concerns

The chief executive of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, has issued a series of stark warnings about the risks posed by Brexit to the future viability and prosperity of the British car industry.

Hawes’ comments came on the back of some disappointing figures for domestic car purchases (down by around 50% in June 2018) with overall production also declining by 5.5% in the same month, with falling domestic sales largely to blame. Most UK built cars are for export (88% of June 2018 production was for export), with the EU being the single biggest market, taking 53% of all UK car exports, followed by the US and China.

The UK car industry employs over 180,000 people and has a combined annual turnover of £82bn and, according to the SMMT there are no benefits that it can discern from the Brexit process, and it has called for our continued membership of the single market and the customs union.

Hawes said that the June results were a “reminder of the exports-led nature” of the UK car industry, which demonstrates the critical importance of getting the right kind of Brexit deal for this valuable industry.

He said: “No one would profess to being Brexit-ready because there are too many variables in there. We need a deal. If we have no deal there is no transition, there is no implementation period, that would kick in less than eight months away. You can operate on World Trade Organisation (WTO) trade rules but it would be at a significant extra cost and burden than we currently enjoy.”

Fears about continued uncertainty about Brexit are already having a negative impact on the UK car manufacturing industry, with Jaguar Land Rover and BMW among those warning about the impact of a bad exit.

 

 

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