Britain's vehicle industry expects no Brexit agreement by March 2019

  • Britain's vehicle industry expects no Brexit agreement by March 2019

Britain's vehicle industry expects no Brexit agreement by March 2019

Britain's vehicle industry has once more called on the government for reassurance over Brexit, saying a transitional deal to leave the European Union is imperative to stop the automotive sector falling off a "cliff edge".

The interim arrangement would maintain membership of the single market and customs union, until a final agreement on a new relationship with the EU is negotiated and implemented.

The UK and European Union automotive sectors are highly integrated, and Hawes warned that a bespoke deal - which would need to cover rules on tariff and non-tariff barriers, and regulatory and labour issues - could not be completed within five years. Without interim arrangements being agreed, businesses would be forced to trade under World Trade Organisation (WTO) rules, which it labelled "the worst foreseeable outcome for the sector, its employees and the British economy".

But in the wake of the referendum result, Mike Hawes, SMMT chief executive, said: "We accept that we are leaving the European Union and we share the desire for that departure to be a success".

According to the report, exporting 200,000 cars a year from the United Kingdom would cost £920 million after two years, which would "easily" cover the cost of building a new plant in the EU.

According to a new report, a "hard Brexit" could result in increasing the cost of assembling a auto in the United Kingdom by £2,370. "This would undermine our competitiveness and our ability to attract the investment that is critical to future growth", he said.

Britain's auto industry set out a list of Brexit demands to Prime Minister Theresa May's government on Tuesday, warning that a return to World Trade Organisation rules could permanently damage the successful sector.

Last year, United Kingdom automotive manufacturers turned over £77.5bn, the highest on record and the seventh consecutive year of growth, according to the SMMT.

While the council said the figures marked a significant move in the right direction, the proportion could still be problematic for some export agreements.

The SMMT wants an interim agreement for the United Kingdom to stay in the Single Market and customs union until a new relationship has been confirmed.