Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK car body warns output will slump if Brexit leads to tariffs with EU

Stock Markets Nov 26, 2019 04:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A lorry with car carrier trailer leaves the Honda car plant in Swindon

By Costas Pitas

LONDON (Reuters) - British annual car production will drop by a third to 1 million by 2024 if Brexit leads to tariffs with the European Union, a trade body warned on Tuesday, saying output would be lost to other countries.

Britons head to the polls in just over two weeks to elect a new government with Prime Minister Boris Johnson promising to pass his Brexit deal as soon as possible, whilst the opposition Labour Party would renegotiate and call a referendum in 2020.

If Johnson, leading in the polls, is re-elected, next year is set to be dominated by talks with Brussels on future trading terms, with British automakers seeking the continuation of free and frictionless trade with their largest export market.

The sector, Britain's biggest exporter of goods, warned on Tuesday that World Trade Organisation tariffs on components imported into Britain and exported vehicles would add more than 3.2 billion pounds ($4 billion) a year to manufacturing costs in the worst case scenario.

"By 2024, falling demand and model reallocation to more competitive and welcoming production locations would see annual output falling to just 1 million vehicles per year," the Society of Motor Manufacturers and Traders (SMMT) said.

Production stood at 1.5 million cars in Britain last year but has fallen by 16% so far this year, hit by a slump in demand for diesel vehicles, falling sales in China and a hit to consumer confidence due to Brexit uncertainty.

Honda (T:7267) and Ford (N:F) have announced plant closures this year but both blamed factors other than Brexit.

Peugeot (PA:PEUP) has said a decision to keep open its Vauxhall car factory in northern England is dependent on the final terms of Brexit.

"The next government must deliver the ambition, the competitive business environment and the commitment needed to keep automotive in Britain," said SMMT Chief Executive Mike Hawes.

UK car body warns output will slump if Brexit leads to tariffs with EU
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email