• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

SMMT makes final plea for zero-tariff trade deal as it warns of £47bn in lost business over the next five years

John Bowman by John Bowman
November 16, 2020
0
Home News

The SMMT is making a last-chance plea for a zero-tariff and zero-quota trade deal as Brexit negotiations enter their final stages.

A new survey by the industry body out today (Nov 10) reveals that preparing for Brexit has cost the automotive sector more than £735m – with over £235m of that spent in 2020.

And it has calculated that if there’s no deal, or if an unworkable one is struck, it will cost the industry up to £47bn in lost trade in cars and vans over the next five years.

Just over two-thirds of companies (67 per cent) say they’re doing all they can to get ready for the new processes that will take effect as of January 1, 2021, the SMMT has found among its members.

Seventy per cent have secured Economic Operators Registration and Identification numbers, which they’ll need when exchanging information with customs administrations.

Meanwhile, three-fifths – 60 per cent – have spent significantly on stockpiling, while just over half – 52 per cent – are employing customs agents.

Disruption or delay to supply chains is high among concerns, but the SMMT says there are still significant gaps in the industry’s ability to plan.

It highlights a lack of clarity about the nature of the UK-EU’s future relationship, which is hampering efforts of almost nine in 10  – 86 per cent – firms to prepare.

The SMMT says companies simply can’t afford any supply chain delays, since the industry’s competitiveness is built on just-in-time deliveries,

As such, clarity on how key new customs systems such as the Goods Vehicle Movement Service and Permission to Progress process is vital, it emphasises.

It adds that even if the UK and EU do conclude a Free Trade Agreement (FTA), it’s still uncertain how businesses will prove origin or products.

If they can’t do that, they’ll be unable to benefit from preferential trading terms.

A phase-in period is also being sought, to give businesses time to adjust.

Failing to achieve these requirements would be the same as no deal, said the SMMT, and would compound the £27.5bn lost in car production and sales because of the coronavirus crisis.

SMMT chief executive Mike Hawes said: ‘As the UK-EU FTA negotiations enter the endgame, now is the time for both sides to deliver on promises to safeguard the automotive industry.

‘Securing a deal is absolutely critical but it cannot be any deal.

‘To work for UK Automotive, it must deliver for UK products, and that means securing the right terms and conditions that allow our exports – now and in the future – to be zero-tariff and zero-quota trade.

‘A deal that failed to achieve this would be the equivalent of no deal at all, devastating jobs and slamming the brakes on the UK’s ambitions to be a world-leading manufacturer and market for electrified mobility and battery technologies.’

  • Register as a Car Dealer member and personalise your experience here
  • Car Dealer Mag issue 152 is out now – Read it here
  • Join our breaking news WhatsApp group – Click here to join now
Previous Post

Suzuki GB to pay its dealers up to £10,000 in December for being ‘Covid-safe and lockdown ready’

Next Post

Nov 10 round-up: Covid vaccine 90% effective; Lockdown is word of the year; Trump turmoil transition; New Discovery

Related Posts

Dealers to be given free advertising across eBay Motors Group in February
News

Dealers to be given free advertising across eBay Motors Group in February

January 13, 2021
New car sales to increase in 2013, suggests Trader Media
News

Renault Retail Group sells flagship London West showroom for £39m

January 13, 2021
John Clark Motor Group sees losses deepen to nearly £2m
News

John Clark Motor Group sees losses deepen to nearly £2m

January 13, 2021
BMW ad banned because ‘no-dazzle’ claim was misleading
News

Five people arrested after BMW dealership targeted twice by thieves in the same morning

January 13, 2021
News

Click and collect comes under increasing scrutiny as Mayor of London calls for it to be banned amid crisis in capital

January 13, 2021
Car Dealer Live: Data shows there are buyers out there and they want new cars via click and collect, say What Car? team
Car Dealer Live

Car Dealer Live: Data shows there are buyers out there and they want new cars via click and collect, say What Car? team

January 13, 2021

Want to receive the latest news?

Sign up to the Car Dealer daily news briefing for the latest news and advice during these unprecedented times.

Subscribe Now
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

December 21, 2020
Used Car Awards Shortlist: Find out who made it through mystery shopping and are now in running for our gongs
News

Used Car Awards Shortlist: Find out who made it through mystery shopping and are now in running for our gongs

January 6, 2021
Investigation: Should car dealers be selling and delivering during lockdown?
News

What do we know about online used car dealer Cazoo? Who is Alex Chesterman? And will Cazoo float on the stock market?

January 5, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 5, 2021
Used car dealer Cazoo accused of online-only U-turn as it sets up physical sites and closes Imperial dealerships
News

Comment: Why Cazoo founder was naive to label this used car sales business as ‘flawed at every level’

December 1, 2020
Car Dealer Power

Car Manufacturer of the Year – Where did your manufacturer rank in Car Dealer Power 2020?

November 23, 2020
Investigation: What do car buyers want from online car sales? New research reveals customers’ likes and dislikes
Car Dealer Live

Investigation: What do car buyers want from online car sales? New research reveals customers’ likes and dislikes

November 28, 2020
Car Dealer Power

The best car dealer suppliers named in the Car Dealer Power Awards 2020

November 26, 2020
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server C