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UK car industry warns next PM against 'seismic' no-deal Brexit

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UK car industry warns next PM against 'seismic' no-deal Brexit

by Costas Pitas

 

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FILE PHOTO: Imported cars are parked in a storage area at Sheerness port, Sheerness, Britain, October 24, 2017. REUTERS/Peter Nicholls

 

LONDON (Reuters) - Britain’s car industry warned the next prime minister on Tuesday against a “seismic” no-deal Brexit in October, which it said could add billions of pounds in tariffs and cause border disruption, crippling the sector.

 

Boris Johnson, the frontrunner to succeed Theresa May, and his leadership rival Jeremy Hunt, have said they are prepared to take Britain out of the EU without a deal on Oct. 31, although it is not their preferred option.

 

Industry body the Society of Motor Manufacturers and Traders (SMMT) warned about the scale of disruption a disorderly exit would cause.

 

“Leaving the EU without a deal would trigger the most seismic shift in trading conditions ever experienced by automotive, with billions of pounds of tariffs threatening to impact consumer choice and affordability,” it said.

 

The British automotive industry fears that a disorderly exit from the EU, its biggest export market, could see the imposition of tariffs of up to 10% on finished models and border delays which could snarl up ports and motorways, ruining just-in-time production.

 

A hard Brexit border could cost 50,000 pounds a minute in border delays, the SMMT said.

 

“The next PM’s first job in office must be to secure a deal that maintains frictionless trade because, for our industry, ‘no deal’ is not an option - we don’t have the luxury of time,” SMMT Chief Executive Mike Hawes told a conference.

 

Britain’s car sector, rebuilt by foreign manufacturers since the 1980s, had been a runaway success story in recent years but since 2017 sales, investment and production have all slumped, blamed on a collapse in demand for diesel vehicles and Brexit uncertainty.

 

Brexiteers have long argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade.

 

The British car sector has faced a series of setbacks this year including around 4,500 job cuts at Jaguar Land Rover (JLR) and plant closure announcements from Honda and Ford.

 

Several investment decisions are also due, including whether JLR will build electric cars in its home market and whether Peugeot will keep its Vauxhall car plant open.

 

“If the right choices are made, a bright future is possible,” said Hawes. “However, ‘no deal’ remains the clear and present danger,” he added.

 

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-- © Copyright Reuters 2019-06-25

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If it is not inner London financial services then your in trouble with any Tory PM🤔 

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7 minutes ago, Loiner said:

Project Fear again and again. It's incessant.
This is just the Remainer motor traders propaganda, looking for the path of least resistance - which happens to be the Remainer part of the UK. They had better go lobby the German manufacturers to up the ante in the EU to make a deal with the UK.

His comment was in response to Joinaman's claim that Germany wouldn't have to charge tariffs on UK goods if it so chose. For obvious reasons, or reasons that should be obvious, this assertion is nonsense.

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10 minutes ago, bristolboy said:

His comment was in response to Joinaman's claim that Germany wouldn't have to charge tariffs on UK goods if it so chose. For obvious reasons, or reasons that should be obvious, this assertion is nonsense.

????? His comment was the first one. A general one about the OP and his idea of a Leavers' response.
That is the only thing that's obvious about it.

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10 hours ago, HauptmannUK said:

I suggest you educate yourself.  If we leave with 'no deal' we cannot do what we want. Read up on WTO and GATT24.

What many do not seem to understand, and that seems to include the politicians, is that there is no such thing as a "no deal scenario". In the event of the UK leaving without any "agreement" there would be a mad panic to create hundreds of mini deals to prevent the UK coming to a standstill.

People tend to get hung up on the major issues and ignore the small print, a great deal of UK industry and services rely on the EU for certification and it is a bit difficult to do business without the appropriate paperwork being in place.

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A meme post and reply have been removed, this is a discussion forum not a post your meme here forum

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