The UK Motor Manufacturers and Traders Association (SMMT) has made a formal request that its government maintain the tariff-free trade with the European Union after Brexit.
The demand arrives with the prime minister Boris Johnson without a majority in the House of Lords. That he has also just seen how his attempts to rig the Brexit agreement are frustrated, with the elimination of the clauses designed to unilaterally break the agreement with the EU.
Billionaire loss alert
According to the SMMT, a no-deal Brexit would cost to the UK automotive industry up to 47.000 million of pounds. Very high losses that would be reached only in the five years following the departure of the United Kingdom. Which is equivalent to 52.700 million euros at the current exchange rate.
In addition, this industry association claims that, as a whole, the sector has spent more than 735 million pounds (824 million euros) in preparing for the separation of the United Kingdom from the EU. Of which 235 million pounds have been spent so far in 2020 (almost 264 million euros).
Uncertainty with Brexit until the last moment
La SMMT adds that 67% of UK automotive related companies are taking measures to deal with customs processes which will come into force on January 1. However, around 86% of the measures are hampered by the lack of clarity about the UK's future relationship with the EU.
According to the association, to this we must add that 60% of companies are "spending more on storage and that 52% are hiring customs agents." Disbursements extra produced due to the uncertain situation that they are experiencing and that must be added to other blows of Brexit such as the loss of the Tesla megafactory or decline in car manufacturing in the United Kingdom.
The SMMT reiterates, as it has done so many times before, that a fair business model relies heavily on customs processes are fast and without important delays. He has asked the government to shed light on the terms and conditions that companies must comply with in transactions.
Coronavirus crisis aggravated if there is no agreement
La possibility of very high tariffs being introduced without a transition period "would compound the impact of the coronavirus crisis, which is already costing the UK sector £27.500bn in losses."
SMMT Chief Executive Mike Hawes said: “As negotiations between the UK and the EU come to an end, it is time for both sides to deliver on their promises to safeguard the automotive industry. Securing the deal is absolutely critical."
More information about this model
- Plazas 5 - 7
- Power 300 - 615 hp
- Consumption 0,7 - 11,8l/100km
- Assessment 4,6