9:29 am, March 30, 2017
THE Society of Motor Manufacturers and Traders has renewed its call for the automotive industry to be at the heart of negotiations, as the government triggered Article 50, formally starting the process to withdraw Britain from the European Union.
Industry experts say we are now facing perhaps the most significant threat to the competitiveness of the UK automotive sector in a generation.
After all, it employs more than 800,000 people across the country, including manufacturers, suppliers, retailers and the aftermarket, contributing £18.9 billion to the economy.
And the biggest market – by far – is Europe. Total automotive trade with the EU is worth more than £42 billion – nearly seven times the value of our next biggest trade partner, the US.
Mike Hawes, SMMT chief executive, said: ‘Triggering Article 50 has started a race against time to secure a deal that safeguards the future of the UK automotive industry.
‘Government has committed to creating and supporting the right conditions for our industry to be successful.
‘That means certainty in our relationship with our biggest market, tariff-free and open borders so products, parts and investment can flow freely, and continued influence over the regulation that governs the vehicles we build and drive.
‘We will continue to work with government and our European counterparts but no deal is not an option. Now is the time for government to deliver.’
No deal at the end of the two-year negotiation period would mean the adoption of World Trade Organisation (WTO) rules, the worst possible outcome for UK Automotive.
Current WTO tariffs are 10 per cent for cars and between 2.5 per cent and 4.5 per cent for parts.
The SMMT has calculated that a 10 per cent tariff would add £1.8bn to the cost of fully assembled cars exported from the UK and £2.7bn to those imported from the EU – which would add some £1,500 to the cost of every one sold in the UK.
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