This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-50564819
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Brexit: 'Only an ambitious trade deal can protect car jobs' | Brexit: 'Only an ambitious trade deal can protect car jobs' |
(about 2 hours later) | |
UK car production could be cut by more than a third if the UK withdraws from the EU without an "ambitious" trade deal, an industry body has warned. | UK car production could be cut by more than a third if the UK withdraws from the EU without an "ambitious" trade deal, an industry body has warned. |
Analysis commissioned by the Society of Motor Manufacturers and Traders (SMMT) predicts that falling back on World Trade Organisation (WTO) rules would add £3.2bn a year to car making costs. | Analysis commissioned by the Society of Motor Manufacturers and Traders (SMMT) predicts that falling back on World Trade Organisation (WTO) rules would add £3.2bn a year to car making costs. |
Car prices would rise and annual output could fall to as little as one million by 2024, the data by AutoAnalysis said. | Car prices would rise and annual output could fall to as little as one million by 2024, the data by AutoAnalysis said. |
The UK made 1.52 million cars in 2018. | The UK made 1.52 million cars in 2018. |
SMMT chief executive Mike Hawes said falling back on WTO rules for imported components and car exports would result in a level of cost increases that the industry would not be able to absorb without prices rises and production cuts. | SMMT chief executive Mike Hawes said falling back on WTO rules for imported components and car exports would result in a level of cost increases that the industry would not be able to absorb without prices rises and production cuts. |
He used the body's annual dinner on Tuesday to call for an "ambitious, world-beating Brexit trade deal to maintain the sector's competitiveness and ability to deliver innovation, productivity and prosperity for Britain". | He used the body's annual dinner on Tuesday to call for an "ambitious, world-beating Brexit trade deal to maintain the sector's competitiveness and ability to deliver innovation, productivity and prosperity for Britain". |
Mr Hawes said the industry needs "frictionless trade free of tariffs, with regulatory alignment and continued access to talent". | Mr Hawes said the industry needs "frictionless trade free of tariffs, with regulatory alignment and continued access to talent". |
He went on: "A close trading relationship is essential to unlock investment so we can deliver our goals: cleaner air, zero carbon emissions, and the ability to go on building our products and marketing them globally. | He went on: "A close trading relationship is essential to unlock investment so we can deliver our goals: cleaner air, zero carbon emissions, and the ability to go on building our products and marketing them globally. |
"Rather than producing two million cars a year by 2020, a no trade deal, WTO tariff worst case scenario could see us making just a million," he said. He predicted that production of new models that would have been made in the UK could be moved "to more competitive and welcoming production locations". | |
UK car manufacturing has already seen its weakest first nine months of a year since 2011, falling by 15.6% year-on-year. Honda and Ford have announced plant closures this year but both blamed factors other than Brexit. | |
Peugeot has said a decision to keep open its Vauxhall car factory in the UK is dependent on the final terms of Brexit. | |
Mr Hawes said automotive was one of the UK's most valuable economic assets, directly responsible for putting food on the tables of 168,000 British workers and their families. | |
"The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain," he said. | "The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain," he said. |