Major political parties are being urged to “put the UK car industry at the heart of their economic and trade policies”.
Just a “world champion”. Brexit “A trade deal” would preserve Britain’s productivity and prosperity, the Society of Motor Manufacturers and Traders (SMMT) has warned.
Without an “ambitious” trade deal, UK manufacturing would lose 1.5 million vehicles by 2024, costing the country up to £42.7 billion.
New SMMT research shows World Trade Organization (WTO) tariffs on imported components and exported vehicles would increase the cost of UK car manufacturing by £3.2 billion a year.
This corresponds to 90 percent of the industry’s annual spending on research and development.
WTO agreement is “worst case scenario”
Mike Hawes, CEO of SMMT, said: “UK Automotive’s needs are clear: frictionless trade without tariffs, with regulatory alignment and continued access to talent.”
“Detailed trade negotiations have yet to begin. They will be complex and take time. However, a close trading relationship is essential to attract investment to achieve our goals: cleaner air, zero carbon emissions and the ability to further develop and market our products globally.
“Instead of producing two million cars a year by 2020, in the worst case scenario with a no-trade deal and WTO tariffs we could only produce one million.
“The next government must deliver the ambition, competitive business environment and commitment needed to keep the automotive industry in the market.”
The SMMT says the UK is well placed to benefit from the initiative Providing more environmentally friendly vehicles and smart mobility, but warns that a bad deal would jeopardize further investment.
“That would be a tragic waste,” they say.
“Unprecedented change”
Speaking at the SMMT dinner in London, SMMT President George Gillespie said: “The automotive sector is going through a period of unprecedented change and we must not allow the pressures of Brexit to divert our focus on a coherent national industrial strategy.” Collaboration between industry and government must be stronger than ever.
“We want to work closely with the next government, as we have in the past; united in the common goal of making UK Automotive a global player that creates jobs, creates wealth and makes us all proud of what we can achieve here.”
Britain’s main political parties are preparing for this general election on December 12, 2019. This is ahead of the proposed Brexit date of January 31, 2020.
2024-02-06 21:46:30
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