The car industry in Britain and the European Union are shifting gears on Brexit, warning that a no-deal scenario would be seriously damaging – raising costs and sowing chaos for carmakers and consumers.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said on July 31 that carmakers were increasingly concerned about the lack of clarity around the manner of Britain’s departure from the EU.
“No deal… is just not an option. It would be seriously damaging to the industry not just in the UK but in Europe as well,” Hawes told reporters as he presented SMMT’s mid-year update on British car production.
As reported by the Reuters news agency, at stake is the future of one of Britain’s few manufacturing success stories since the 1980s – a car industry employing over 850,000 people and generating annual turnover of $110bn. Much of the industry is owned by foreign companies.
The world’s biggest carmakers, including Toyota, BMW and Ford, have urged Britain to ensure that they can import and export without hindrance after Brexit.
British car output in the first six months of 2018 fell by an annual 3.3% to 834,402, with disappointing domestic demand cancelling out strong exports, SMMT said.
