The Society of Motor Manufacturers and Traders is urging politicians to ‘get a Brexit deal’ or face the ‘irrevocable damage of tariffs’ to automotive sector jobs.
The call came as November car production figures in the UK showed a 1.4 percent decline, leaving year-to-date figures down 31 percent.
It means 380,809 fewer cars have been built in Britain so far in 2020. This represents a cost of £10.5 billion to the automotive sector.
“Yet another decline for UK car production is of course concerning,” said SMMT chief executive Mike Hawes, “but not nearly as concerning as the new year nightmare facing the automotive industry if we do not get a Brexit deal that works for the sector.
“The threat of ‘no deal’ is palpable and the sector, now also reeling from the latest coronavirus resurgence, Tier 4 showroom lockdowns and disruption at critical UK ports, needs more than ever the tariff-free trading arrangements on which our competitiveness is founded.
“It is finally make or break time.”
Mr Hawes said no-deal tariffs would be punitive and cause devastation across the automotive industry from day one.
“For the long-term survival of UK automotive, there is quite simply no other option.”
November 2020 manufacturing
A total of 106,243 cars were built in Britain in November 2020. Although a better performance than many other months during the year, the reality of the underperformance was masked by a weak November 2019, says the SMMT.
Ironically, that was because factories had shut down ahead of a potential ‘no deal’ on 31 October 2019.
More than 85 percent of cars built in November were made for export, which the SMMT says highlights the ‘critical importance of free and fair trade with global markets’.
2020 is on course to see fewer than one million cars built in the UK for the first time since the 1980s.
If a no-deal Brexit enforces WTO conditions in the industry, the sector faces production losses amounting to more than £55 billion over the next five years.
Even if a deal is reached, it needs swift ratification by parliament.
The UK automotive industry turns over almost £79 billion a year and is the country’s biggest exporter of goods, accounting for 13 percent of total exports.
What’s more, automotive directly employs more than 180,000 in manufacturing alone – and such high-skilled jobs command an average wage 21 percent higher than the UK average.
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