Brexit without a deal will cost the automotive industry £ 40 billion

A British industrial body has warned that car production could lose more than a third if the UK leaves the EU without an "ambitious" trade deal.

Analytical studies commissioned by the British Automobile Manufacturers and Traders Association (WAMB) predicted that reliance on WTO practices for imported parts and exported vehicles would lead to an increase in the cost of the UK auto industry by LE 3.2 billion (4.1 billion). Dollars) per year.

According to research by Auto Analysys, the industry will be forced to raise vehicle prices, reducing annual production to less than a million vehicles by 2024, with a production cost loss of more than £ 40 billion ($ 51.7 billion). .

It is worth mentioning that the number of cars manufactured in Britain in 2018 amounted to about 1.52 million cars.

The British Automobile Manufacturers and Dealers Association took the opportunity to hold its annual dinner to call for an “ambitious Brexit trade agreement that matches all previous attempts to maintain the sector's competitiveness and its ability to deliver innovation, productivity and prosperity to Britain.”

Mike Hughes, the association's chief executive, said the industry needed "unimpeded trade, unified regulation and the ability to employ skilled labor."

"Close trade relations with the EU are essential to attract investment and thus achieve our goals of zeroing carbon emissions and the ability to manufacture competitive cars in global markets. Instead of producing two million cars a year by 2020," he said. Failure to reach a trade agreement and expecting the worst scenario for WTO tariffs could lead us to produce only a million cars. The next government must provide an ambitious and competitive business environment and the commitment necessary to maintain Britain's auto industry. "

The UK's automotive industry has seen its weakest nine months this year since 2011, with production falling 15.6% year-on-year, reflecting lower domestic and global demand.

© The Independent