‘Catastrophic’ Brexit threat
Trade doubts already denting car firms
A NO-DEAL Brexit would be “catastrophic” for UK car firms, with more than half already suffering, a trade body has said.
The head of the Society of Motor Manufacturers and Traders yesterday ramped up warnings about crashing out of the EU next March.
Mike Hawes, chief executive of the SMMT, told an industry event: “Plants will close, jobs will be lost.”
His warning came as a survey of SMMT members found 74% fear a no-deal Brexit would harm their business. Around 8% said it would be good for them, nearly 10% believed it would have no impact and the rest were unsure.
Meanwhile 55% said their operations had already suffered as a result of uncertainty about future trading arrangements. Nearly a third have postponed or cancelled UK investment decisions due to
Brexit, with one in five having already lost business as a direct consequence. More than half said they had put contingency plans in place, with 12% relocating operations overseas.
The survey adds to mounting warnings from industry chiefs about the ending of so-called frictionless trade with the EU.
The sector employs 856,000 people and is worth £20.2billion to the economy.
Of the 80% of UK-made cars that are exported, most go to the EU.
Tony Walker, SMMT president and managing director of Toyota Motor Europe, said: “No deal is not
an option. In the short term, crashing out of the EU would have immediate and devastating impacts.
Disruption could last for weeks, even months.”
Former defence secretary Michael Fallon yesterday warned the current Brexit deal was “doomed” and must be renegotiated.
Parliament is due to vote on the terms of the PM’s deal on December 11.