London – A no-deal Brexit could cost the UK car sector £55bn ($73bn) and cut production by 2m units as a result of WTO tariffs applying to cars and their components, a UK trade body has warned.
No-deal Brexit could take UK car production under 1m units by 2026
SMMT, which represents car makers and dealers in the UK, asked the UK government to ensure the sector will not face further damage from the imposition of tariffs from 1 January 2021. This would deliver another EUR110m blow to manufacturers on both sides of the Channel, it said.
'With scant time left for business to prepare for new trading terms, the sooner a deal is done, and detail communicated, the less harmful it will be for the sector and its workers,' SMMT added.
'As the clock ticks ever closer to midnight on the Brexit negotiations, the competitiveness and employment we need to get back to growth – green growth – hangs in the balance,' said Mike Haws, SMMT’s chief executive.
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