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Honda Says U.K. Plant Can’t Afford 10% Post-Brexit Tariff
Honda Motor Co. warns it won’t be able to afford the 10% tax on cars it exports from England that will result if the U.K. fails to negotiate a better trade deal when it exits the EU in March 2019.
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Honda Motor Co. warns it won’t be able to afford the 10% tax on cars it exports from England that will result if the U.K. fails to negotiate a better trade deal when it exits the EU in March 2019.
Honda’s Civic hatchback factory in Swindon currently ships most of its output duty-free to the European market, a perk of the U.K.’s membership in the EU. But that arrangement could be replaced by a 10% tariff under World Trade Organization guidelines after Brexit.
Honda, like other carmakers in England, is pushing the British Parliament to come up with at least an interim trade deal soon. In the meantime, the company notes, uncertainty is stifling decisions to add new models, including those with electrified powertrains, at the Swindon plant.
Reuters notes that Ford Motor Co. says similar issues cloud the future of two engine plants it operates in England. PSA Group’s British Vauxhall brand tells Parliament it might be forced to stockpile components to reduce the impact of new customs procedures in 2019.
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