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SMMT: No-Deal Brexit Could Kill Auto Industry
The British auto industry faces an “existential threat” if the U.K. crashes out of the European Union without a new trade deal, warns the Society of Motor Manufacturers and Traders.
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The British auto industry faces an “existential threat” if the U.K. crashes out of the European Union without a new trade deal, warns the Society of Motor Manufacturers and Traders.
SMMT CEO Mike Hawes cautions new Prime Minister Boris Johnson, who has championed a hard Brexit, that Britain’s auto industry is deeply integrated with Europe. Without favorable post-Brexit trade agreements, Hawes declares, carmakers will face huge tariff costs and supply disruptions that upset production and further jeopardize foreign investment.
The U.K. is scheduled to leave the EU at the end of October. Johnson says he prefers to do so without drama. But he also has vowed to leave with or without new trade pacts.
Analysts note that Johnson has shown little interest in the auto industry in recent months but appears confident that is tough stance will coax the EU into new negotiations. Other Brexit supporters contend that Germany, which counts the U.K. as a major market, will exert considerable pressure on the EU to shield that business from the perils Hawes describes.
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