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Brexit could cost $74bn by 2025 – UK car industry

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Britain’s car industry body on Tuesday called on Brexit negotiators to clinch a deal by the end of 2020, to avoid loss of 55.4 billion pounds ($74 billion) in tariffs by 2025.

It said this could undercut its ability to develop the next generation of zero-emission vehicles.

The Society of Motor Manufacturers and Traders (SMMT) said a “no deal” Brexit would cut UK vehicle production by two million units over the next five years.

“With scant time left for businesses to prepare for new trading terms, the sooner a deal is done and detail communicated, the less harmful it will be for the sector and its workers,” the SMMT said in a statement.

British and EU negotiators are working to sign a new trade deal by Jan. 1, 2021.

Failure to do so could leave car manufacturers paying World Trade Organisation (WTO) tariffs on parts and vehicles imported and exported into and out of Britain.

The British car industry group said that WTO tariffs of up to 55.4 billion pounds by 2025 would come on top of the immense cost to UK manufacturers of the coronavirus pandemic.

The SMMT’s appeal for a deal on Brexit comes less than a week after the UK government said it would ban sale of new petrol and diesel cars and vans from 2030.

The ban will be part of a “green revolution” to cut emissions to net zero by 2050.

The industry group said WTO tariffs would add an average of 2,000 pounds to the cost of British-built electric cars sold in the EU.

“Making UK plants considerably less competitive and undermining Britain’s attractiveness as a destination for inward investment,” it said.

It said tariffs would add 2,800 pounds to the price tag of an imported EU-built electric car, “all but cancelling out” the UK government’s 3,000 pound zero-emission car subsidy.

Edited By: Fatima Sule/Julius Toba-Jegede
(NAN)

Fatima Sule

Fatima Sule: NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.ng. Disclaimer.

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