British car industry says "no deal" Brexit could drive a £55.4 bn loss for sector
A British car industry body has announced that a “no deal” Brexit could cost the automobile industry £55.4bn by 2025.
The Society of Motor Manufacturers and Traders (SMMT) said a “no deal” Brexit would cut UK vehicle production by two million units over the next five years.
It called on Brexit negotiators to complete a deal by the end of 2020, saying that leaving the EU without a deal would undercut its ability to develop the next generation of zero-emission vehicles.
A no-deal Brexit could leave car manufacturers paying World Trade Organization (WTO) tariffs on parts and vehicles imported and exported into and out of the country.
The SMMT said that this would add £2.8k to the price of an imported EU-built electric car, meaning that it would be harder for the UK to become more sustainable.
The organisation said: “With scant time left for businesses 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.”
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