The Society of Motor Manufacturers and Traders has warned that a no-deal Brexit could increase the average cost of a car by £1,500.
The automotive trade body has told the UK government that leaving the UK without a deal is “not an option” for the sector, which employs 800,000 people in the UK.
“Tariffs alone should be enough to focus minds on sealing a withdrawal agreement between the EU and UK but the potential impact of ‘no-deal’ means the stakes for the automotive sector are far higher,” said Mike Hawes, the SMMT’s chief executive.
“Without a deal, there can be no transition period and the complex issues surrounding tariffs and trade, customs, regulation and access to talent, will remain unresolved.”
“Our industry is deeply integrated across both sides of the Channel so we look to negotiators to recognise the needs of the whole European automotive industry and act swiftly to avoid disruption and damage to one of our most valuable shared economic assets,” he added.
The SMMT will tell EU representatives on Wednesday in Brussels that leaving the EU without a deal will result in £5 billion in annual tariffs, with prices of cars significantly increasing for consumers.
The trade body has frequently warned against the consequences of a no-deal Brexit and the impacts it will have on the automotive sector.
Car manufacturers have not taken the Brexit negotiations lightly, warning the government of plans to move operations to elsewhere in the EU.
Honda (TYO: 7267) warned that a no-deal Brexit will cost the group tens of millions of pounds a year. BMW (ETR: BMW) has also announced plans to shut down its Mini plant in Oxford following the UK’s official departure date from the EU in March 2019.
Jaguar Land Rover also announced earlier this week that 2,000 staff will move to a three-day week at its Castle Bromwich plant.
