Boris Johnson and rival Jeremy Hunt, have both said they are prepared to take Britain out of the EU without a deal on Oct. 31, 2019, although this is not their preferred option.
In a statement, Britain’s car industry warned Boris Johnson, the frontrunner who is most likely to succeed Theresa May, that a no-deal Brexit would amount to a “seismic” shock to the British car industry and could disrupt if not cripple it.
Johnson and his leadership rival Jeremy Hunt, have both said they are prepared to take Britain out of the EU without a deal on Oct. 31, 2019, although this is not their preferred option.
“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,” said Britain’s car industry body, the Society of Motor Manufacturers and Traders (SMMT).
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.
In a statement, the SMMT stated, a hard Brexit border could cost 50,000 pounds a minute in border delays.
“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,” said Mike Hawes, SMMT’s Chief Executive in a conference.
Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its best to protect this trade.
Several investment decisions in the car industry 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”.