Mexican Media Brands
German Carmakers Predict U.K. Tariffs after Brexit
The U.K.’s decision to exit the European Union appears almost certain to result in tariffs for European carmakers on their British-made vehicles and components, Reuters reports.
#economics #labor
Share
The U.K.’s decision to exit the European Union appears almost certain to result in tariffs for European carmakers on their British-made vehicles and components, Reuters reports.
Britain hopes to preserve its tariff-free status with the EU after so-called Brexit. But industry sources tell the news service that isn’t likely to happen. German Chancellor Angela Merkel opposes special treatment for the U.K. that could encourage other nations to quit the EU. VDA, Germany’s auto industry trade group, agrees, saying the top priority for EU members must be to “stand together.”
Ford Motor Co. has warned that engines it makes in the U.K. could be saddled with nearly 3% duties after Brexit is completed. Exports of British-made vehicles can be taxed as much as 10% under World Trade Organization rules.
Without trade concessions, EU-based exporters can expect their British-built goods to gain about £3.9 billion ($4.9 billion) in annual tariffs, according to U.K.-based Civitas (The Institute for the Study of Civil Society).
New taxes also would hurt auto plans in the U.K., which import about 60% of the parts—two-thirds of them from the EU, according to the Society of Motor Manufacturers and Traders.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future