The United Kingdom is set to leave the European Union in just five weeks and the car industry is not tired pointing out the effects of the UK leaving the bloc without a trade deal.
Groups such as the European Automobile Manufacturers’ Association, the European Association of Automotive Suppliers and 17 national groups have warned of the impact of a no-deal Brexit on the car industry, claiming it could trigger billions of euros in losses and thousands of jobs.
“The UK’s departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel,” the statement reads. “The end of barrier-free trade could bring harmful disruption to the industry’s just-in-time operating model, with the cost of just one minute of production stoppage in the UK alone amounting to €54,700 (£50,000).”
If a deal cannot be reached, the two sides could revert to World Trade Organisation trading rules that could add 5.7 billion euros ($6.2 billion) to the car trade bill between the UK and EU, Reuters reports.
Britain’s car industry is particularly vulnerable to changes in trade conditions because it is almost entirely foreign-owned by German, Japanese and French car manufacturers.
The UK is set to leave the EU on October 31 after the initial split date of March 31 was delayed by seven months. Businesses are becoming increasingly concerned with the apparent lack of progress in securing a deal by newly-electric Prime Minister Boris Johnson.