Warnings over the impact of no-deal Brexit on the car industry

In a joint statement, members of the auto industry in Europe have warned that a no-deal Brexit could cause major issues for the industry and many manufacturers could struggle to maintain their current levels of business.

The statement came from the heads of 23 auto business associations. One of them, Christian Peugeot, head of French automotive industry association CCFA said in the statement. “Brexit is not just a British problem, we are all concerned in the European automotive industry, and even further.”

The statement added: “The UK’s departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel.”

At the moment, major manufacturers benefit a great deal from access to the single market. In Britain, auto giants Peugeot, Nissan, and BMW have factories. These and other manufacturers are able to send vehicles between the UK and EU members with ease.

Additionally, according to industry data, the UK is the destination for around 10% of vehicles that are made in the EU. If Boris Johnson continues with plans to leave the union at the end of October, even without a deal, it could make it harder to trade.

If Brexit becomes chaotic, this could be a huge blow to the industry as it’s so dependant on frictionless trade. And as we’ve seen, Britain’s car industry, which is mostly foreign-owned, is already suffering from the prospect of a no-deal Brexit as companies are reluctant to invest.

Bernhard Mattes, the head of Germany’s auto lobby VDA said: “The EU and UK automotive industries need frictionless trade and would be harmed significantly by additional duties and administrative burden on automotive parts and vehicles. Consequently, the UK and the EU should undertake all necessary steps to avoid a no-deal Brexit.”