What does a no-deal Brexit mean for car production?

According to a report by the BBC, in the case of a no-deal Brexit – UK car production could be cut by more than a third. 

Following analysis commissioned by the Society of Motor Manufacturers and Traders (SMMT) it was predicted that £3.2bn a year would be added to car making costs, when falling back on World Trade Organisation (WTO) rules.

UK car manufacturing has already seen its weakest first nine months of a year since 2011, falling by 15.6% year-on-year. Honda and Ford have announced plant closures this year but both blamed factors other than Brexit.

Peugeot has said a decision to keep open its Vauxhall car factory in the UK is dependent on the final terms of Brexit.

SMMT chief executive Mike Hawes said falling back on WTO rules for imported components and car exports would result in a level of cost increases that the industry would not be able to absorb without prices rises and production cuts.  Mr Hawes stresses “The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain.”

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