U.K. carmakers urge Brexit delay rather than no-deal exit

10 September 2019 - autoblog

Illustration

'Leaving without a deal would be the worst outcome'

Britain should delay Brexit beyond Oct. 31 rather than leave the European Union without a deal, which would be particularly harmful to large carmakers, the head of the sector's industry body told Reuters on Friday.

As Britain spins towards an election, Brexit remains up in the air more than three years after Britons voted to leave the world's biggest trading bloc in a 2016 referendum leading to the country's biggest political crisis in decades.

The autos sector, the country's biggest exporter of goods, has been one of the most vocal opponents of a no-deal Brexit, warning that production would be hit with tariffs, border delays and new bureaucracy, ruining the viability of many plants.

"Leaving without a deal would be the worst outcome," the Chief Executive of the Society of Motor Manufacturers of Traders (SMMT) Mike Hawes told Reuters.

"If it takes an extra couple of months to get that deal, I think the industry would put up with that," he said.

Prime Minister Boris Johnson's government has been urging companies to ramp up their efforts to prepare for a no-deal Brexit but not everyone can repeat plans in place for the original March exit date.

Ministers have said they could help sectors hit by a disorderly exit and Brexiteers have long argued that Europe's biggest economy, Germany, which exports hundreds of thousands of cars to Britain each year, would protect that trade.

Whilst some preparations, such as new IT systems, can be carried over, others, including building additional component stocks have to be redone, and some plans, such as temporarily shutting plants to cope with no-deal, cannot be repeated by all.

BMW, which moved its annual summertime shutdown at its Mini and Rolls-Royce factories to April to mitigate the effects of a disorderly exit, has said it cannot do the same again this time.

"Some may have a degree of flexibility, others won't," said Hawes.

PRODUCTION AT RISK
A series of new models, key to firms already hit by a collapse in diesel demand, the dented Chinese market and electrification, are due to roll off British production lines over the next few months.

Nissan, which operates Britain's largest car factory, will be producing the new Juke from October, BMW's electric Mini is due in the autumn and Aston Martin's first sport utility vehicle will be built at a new plant in Wales.

The uncertainty over Brexit leaves the future of Peugeot's British car plant, which builds the Vauxhall/Opel Astra, in question as the firm has committed to keeping the site open "conditional on the final terms of the U.K.'s exit from the European Union."

Meanwhile Britain's biggest carmaker Jaguar Land Rover, whose parent company posted record losses earlier this year, has said its Brexit planning costs were more than 100 million pounds between April and June.

All the main car companies in Britain are foreign-owned but the case for investing in the country as a gateway into Europe is at risk, Ian Henry, Professor in Automotive Business Strategy at Birmingham City University's Centre for Brexit Studies told Reuters.

"When you're talking about adding billions of pounds to the cost structure of an industry which either makes very low margins or no money at all, that can only undermine the viability of producing vehicles in this country," he said.

News By Tags

a1A4Akcja naprawczaakcja serwisowaakcyzaakcyza na samochódalfa romeoaston martinaudiAudi A3Audi RS5Austriaauta elektryczneauta używaneAutobusyautonomous carautostradaautostrada A1autostrada A4autostradybadanie technicznebentleybezpieczeństwobikebikesbmwBMW M3BMW M4BMW M5BMW Z4Brexitbudowa drógBudowa dróg ekspresowychcamper vanCarlos GhosncennikCenyceny occeny paliwCeny samochodówceny w PolscecepikchevroletchinaChryslerciezarowkacitroenCofanie LicznikaCOVID-19custom carczas pracy kierowcydaciaDacia DusterDacia SanderoDaimlerdakarDetroit Auto ShowDieseldiesel scandaldowód rejestracyjnydrag racedroga ekspresowaDroga S7drogiDrogi ekspresowedrogi w polsceegzamin na prawo jazdyegzamin prawo jazdyelectricEUeuropeevfabrykafcaferrarifiatFiat 500Fiat DucatoFiat PandaFiat TipofordFord BroncoFord FiestaFord FocusFord MondeoFord MustangFord Mustang Mach-EFord PumaFORD SIERRAFord Transitformula 1formula1Formuła 1fotoradarfotoradaryFrankfurt Motor ShowfunnyGdańskGDDKiAGeelyGenesisGeneva Motor Showgermanygielda samochodowagitdgranicaHarley-Davidsonhistoria pojazduhondaHonda CivicHonda CR-VhydrogenhyundaiHyundai ElantraHyundai i20Hyundai i30Hyundai IoniqHyundai KonaHyundai SonataHyundai TucsonHyundai VelosterIMPORTImport SamochodówinfinitiITDJaguarjak ominąć korkijeepjobsKajetan KajetanowiczKawasakiKen BlockkiaKia Picantokia sorentokia soulKIA Sportagekierowcykontrola drogowakorkiKoronawiruskradzieżkradzież autaKradzieże autkradzieże samochodówKrakowKUPUJEMY UŻYWANELA Auto ShowlamborghiniLanciaLand RoverLexusLotuslpgmandatMandat karnymandatyMazdaMazda MX-30mclarenmecedesMercedesMercedes SprinterMinimitsubishiMOTOCYKLEmotorcyclemotorsportMotoryzacjamotosportnaprawa autaNetherlandsNew York Auto Showniemcynietrzeźwi kierowcynissanNissan JukeNissan LeafNissan QashqaiNorwaynowe samochodynowy samochódodcinkowy pomiar prędkościodebranie prawa jazdyopelopel astraOpel CorsaOpel InsigniaOpel MokkapaliwapaliwoParis Motor ShowparkingparkowaniepeugeotPeugeot 2008Peugeot 208Peugeot 3008Peugeot 508pickupPKP IntercitypodatekPolandpolicjapolisa ocPolskaPope FrancisporschePorsche 911Porsche TaycanPoznańPoznań Motor Showprawa jazdyprawoprawo jazdyprędkośćprzebieg autaprzegląd technicznyprzekroczenie prędkościPRZEPISYPRZEPISY DROGOWEPRZEPISY RUCHU DROGOWEGOPrzetargPSApunkty karneradiowozyRajdRajd BarumRajd DakarRAJDOWE SAMOCHODOWE MISTRZOSTWA POLSKIRajdyrallyrally carRAMrecallRejestracjarejestracja autaREJESTRACJA POJAZDUrejestracja samochodurenaultRenault CapturRenault ClioRenault MeganeRimacRobert KubicaRomaniaRSMPRuch drogowyrvRyneksafetysamochód elektrycznysamochód używanysamochodysamochody elektryczneSAMOCHODY HYBRYDOWESAMOCHODY JAPOŃSKIESAMOCHODY KLASYCZNESAMOCHODY NIEMIECKIESAMOCHODY POLSKIEsamochody używaneSauberscaniaseatSeat LeonSejmself-driving carSEMAskodaSkoda CitigoSkoda Enyaqskoda fabiaSKODA FABIA R5Skoda KamiqSkoda KaroqSkoda KodiaqSkoda OctaviaSkoda RapidSkoda SuperbSkoda VisionSOPspalinySprzedażsprzedaż autsprzedaż autasprzedaz nowych autsprzedaż samochodówSprzedaż samochodów w Polscespy shotsssangyongstacja paliwstatystykistawki akcyzystraż granicznastrefa płatnego parkowaniaSubarusupercarsSUVsuzukiSuzuki JimnySuzuki SwiftSwedenSzczecintablice rejestracyjnetachograftankowanietechnologyTerenoweteslatestTokyo Motor ShowtoyotaToyota AurisTOYOTA AVENSISToyota AygoToyota CamryToyota CH-RToyota CorollaToyota Land CruiserToyota MiraiToyota Rav4Toyota SupraToyota Yaristrucktuningtychyuberubezpieczenie ocUbezpieczenie SamochoduukUkrainaUnia EuropejskaUnited StatesUOKiKUSAutrata prawa jazdyUżywaneużywane autavanVauxhallVia CarpatiaviatollVolkswagenVolkswagen ArteonVolkswagen GolfVolkswagen ID.3Volkswagen PassatVOLKSWAGEN T-ROCVolkswagen TiguanVolkswagen TouaregVolkswagen TransporterVolvoVolvo xc40vwVW CaddyVW GolfVW PassatVW PoloWarszawwarszawaWRCWrocławwypadekwypadkizakup autazakup samochoduzatrzymanie prawa jazdyzmiany dla kierowcówŁódźЄвробляхиЄвропейський СоюзЄСаваріїаваріяВаршававикрадене автодорогиДТПелектричне автоконтролькордонкоронавірусперевірка на дорогахперевірки на дорогахподаткиполіціяпольсько-український кордонПольщаправила дорожнього рухуправила дорожнього руху в Польщіприкордонникирозмитнення автоСлавомір НовакУкраїнаукраїнціУкравтодорштрафи
Sell Your Car