How The UK Car Industry Has Spent £735m on Brexit?

Tue 10th Nov 2020

The combined efforts of both the motor manufacturing and retail industry in preparing for Brexit has so far cost £235 million in the last ten months, but the Society of Motor Manufacturers and Traders is warning that the final bill could be in the billions.

Many car dealers are stockpiling ahead of the expected import problems, while many more within the industry have spent significant sums on customs agents and acquiring the correct registration and identification numbers.

But with the UK on the precipice of leaving the European Union without a deal, the SMMT has predicted that the nightmare scenario might cost the sector £47 billion in car and van sales over the next five years.

Mike Hawes, chief executive of the SMMT, said: “As the UK-EU FTA negotiations enter the endgame, now is the time for both sides to deliver on promises to safeguard the automotive industry.

“Securing a deal is absolutely critical, but it cannot be any deal. To work for UK automotive it must deliver for UK products, and that means securing the right terms and conditions that allow our exports - now and in the future - to be zero-tariff and zero-quota trade.

“A deal that failed to achieve this would be the equivalent to no deal at all, devastating jobs and slamming the brakes on the UK’s ambitions to be a world-leading manufacturer and market for electrified mobility and battery technologies.”