‘No deal’ Brexit would be catastrophic warns UK car industry

News

Three quarters of UK automotive businesses fear a ‘no-deal’ Brexit will threaten their future viability, according to a new survey by the sector's trade body the Society of Motor Manufacturers and Traders (SMMT).  

The survey – based on responses from 182 SMMT member companies - highlights the sector’s critical need for a Brexit withdrawal deal and transition to prevent the industry falling off the cliff-edge on March 29 when the UK leaves the EU.

74.1 per cent of companies with UK operations responding to the survey said that a ‘no-deal’ scenario would damage their business, with fewer than 9.0 per cent foreseeing any positive impact.

More than half said their operations have already suffered as a result of uncertainty about future trading arrangements. Almost a third said they had postponed or cancelled UK investment decisions because of Brexit, with one in five having already lost business as a direct consequence.

More than half of firms said contingency plans are now being executed, with over one in 10 relocating UK operations overseas and the same proportion already reducing employee headcount. Many have also made alterations to logistics and shipping routes, investment in warehousing and stock and adjustments to production schedules.

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