Britain’s automobile industry could suffer a £55.4bn ($73.9bn) loss over the next five years if the UK government cannot reach an exit deal with the European Union (EU), according to the Society of Motor Manufacturers and Traders (SMMT).
Mike Hawes, SMMT’s chief executive, commented last week that without the conclusion of a “free trade agreement” the UK would have to fall back on World Trade Organization (WTO) tariffs, which could add an average of £2,000 in costs per vehicle sold into the EU.
As a result, British-built vehicles would become significantly less cost-competitive and could consistently stifle annual production volumes to below one million units per annum based on SMMT estimates.
(£1 = $1.33)