The average cost of a UK-built car imported to the EU would increase by an average of £2700 as a result of new tariffs caused by a no-deal Brexit, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT, the UK automotive industry body and a vocal critic of Brexit, has today called on the UK’s Brexit negotiators to rule out a no-deal Brexit completely to avoid such tariffs being imposed, and to protect UK car production and jobs.
The tariffs – 10% of a car's import/export value and automatically applicable to all EU/UK imports/exports in the event of a no-deal Brexit – would affect “demand, profitability and jobs” in the UK if passed onto buyers of British-built cars in the EU, the SMMT said.
Conversely, the average cost of an EU-built car sold in the UK would increase by around £1500-£1700 if there is no deal, according to the SMMT’s own calculations. The total cost of tariffs across the UK and EU would be £5 billion per year for cars and light commercial vehicles, the SMMT claimed.
The SMMT is meeting with EU representatives in Brussels to highlight the importance of the EU and UK car industries remaining fully integrated, and for a seamless Brexit that maintains the status quo.
Yesterday, Mini confirmed it would move its month-long summer shutdown forward in 2019 to 1 April, two days after the UK is scheduled to exit the EU. This is being done “to minimise the risk of any possible short-term parts supply disruption in the event of a no-deal Brexit”.
Join the debate
xxxx
aaaaaahhh
NO MORE BREXIT RELATED STORIES PLEASE!!!
typos1 - Just can’t respect opinion
Rtfazeberdee
xxxx wrote:
Why not? Does reality bite?
xxxx
Insult flys
It brings the worst out in people.
typos1 - Just can’t respect opinion
artill
xxxx wrote:
And no more SMMT doom and gloom stories while we are at it please
The Colonel
artill wrote:
It’s not doom and gloom. It is a simple mathematical equation applied, using known information, following the UK’s departure from the EU, unless, or until, a suitable trading arrangement is in place. This will happen with no deal. This is what “falls MG back on WTO rules” means.
For crying out loud. Why are people so defiantly ignorant about all of this? Why do they take sensible, fact based, reporting as such a personal affront?
Car production, and motoring, is such a small part of all of this.
The Colonel
The Colonel wrote:
of course, manufacturers can absorb the impact of tarrifs against sales prices, but that has to be done through lowering manufacture and supply costs. They can’t subsidise the tariff against profit.
That bloke
There will be advantages and
There will be advantages and disadvantages to leaving the EU. They are numerous on both sides. But it doesn't matter. It's a political decision that's been made by the majority of those who bothered to vote. Even if it brought terrible economics, so what? It's been democratically decided. Not everything is going to be rosey by us leaving, but that's not what it is about. Our overriding problem (as we're an island) is population. It's just that some people can't see that just yet. They see their GP surgery full, their schools full, the infrastructure at maximum...but it doesn't register with them. Immigration is fuelling 82% of population growth (that has been confirmed). Given that, we MUST reduce immigration to get a grip on our population. We could never keep reins on our population while in the EU (given the freedom of movement and the EU's insane open-door policy that will eventually bring it down - if the Euro doesn't get it first). So leaving was the only option. Even if we only half leave (if May gets her absurd Chequers deal through) at least we don't have to accept the EU's mental immigration policies any more. You may disagree, I really don't care, but please understand that population growth is THE problem of the future, bar none.
xiquitinx
Nice. But don't care, te
Nice. But don't care, te solution will be more patriotism.... and lower costs, so the workers must have lower salaries to help UK, always the same people do the efforts for the country.
With those costs, we can say goodbye to Nissan and part of the production of other foreign makers, like Mini, Jaguar or Land Rover, because they are indian or germans, not british patriots, and sells more in UE than UK.
As Carlos Goshn said a time ago, "we have factories in Europe, for Europe. Has no sense to have a factory for Europe, out of Europe".
Enjoy the voted and stay at home during the referendum.
That bloke
So what?
So what?
MarkHull
Japanese Brands
How do Japanese brands sell Japanese made cars for less than brands such as VW in the EU, despite covering the tariff?
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