The average cost of a UK-built car imported to the EU would increase by an average of £2700 as a result of new tariffs caused by a no-deal Brexit, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT, the UK automotive industry body and a vocal critic of Brexit, has today called on the UK’s Brexit negotiators to rule out a no-deal Brexit completely to avoid such tariffs being imposed, and to protect UK car production and jobs.
The tariffs – 10% of a car's import/export value and automatically applicable to all EU/UK imports/exports in the event of a no-deal Brexit – would affect “demand, profitability and jobs” in the UK if passed onto buyers of British-built cars in the EU, the SMMT said.
Conversely, the average cost of an EU-built car sold in the UK would increase by around £1500-£1700 if there is no deal, according to the SMMT’s own calculations. The total cost of tariffs across the UK and EU would be £5 billion per year for cars and light commercial vehicles, the SMMT claimed.
The SMMT is meeting with EU representatives in Brussels to highlight the importance of the EU and UK car industries remaining fully integrated, and for a seamless Brexit that maintains the status quo.
Yesterday, Mini confirmed it would move its month-long summer shutdown forward in 2019 to 1 April, two days after the UK is scheduled to exit the EU. This is being done “to minimise the risk of any possible short-term parts supply disruption in the event of a no-deal Brexit”.
Earlier this week, Jaguar Land Rover announced its Castle Bromwich factory would be moving to a three-day week until Christmas following the uncertainty of Brexit and a slump in demand for the diesel engines that power many of the Jaguar XE, Jaguar XF and Jaguar XJ saloons built there, in addition to the Jaguar F-Type sports car.
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Profit
In the not too distant past( remember) many a German manufacturer admited that the UK provides their massive profits...they are in it for the money, fact amundo.
Meanwhile, at Ford .......
Ford have created their own woes in Europe, through poor Product Planning and exposing themselves to the exchange rate markets by importing all their models into their best, most loyal, and most profitable market, the UK. Big error by Ford's Bob Shanks et al to blame their customers, in the UK, having nominated 20 years ago Ford of Germany to run the entire Ford European operation.
More SMMT rubbish
"Conversely, the average cost of an EU-built car sold in the UK would increase by around £1500-£1700 if there is no deal, according to the SMMT’s own calculations."
This is just SMMT propaganda. Note their decision to use an 'average' figure. Then they state a range of values - £1,700 is 13.3 per cent higher than £1,500. How did they calculate the figures? What assumptions did they use? What exchange rate? The average will mean all EU cars have been taken into account - from Dacia Sanderos to Ferraris. What will the price increase be for a Dacia Sandero?
They don't tell us about how much cheaper non-EU cars (and the associated spare parts) will be after the UK has left the EU.
The EU will collapse once the UK has left properly. Cars from Poland and Spain will probably end up a lot cheaper.
max1e6 wrote:
Spot on max1e6, and clearly the SMMT has failed to notice the slight skewing effect that a Rolls-Royce, a Bentley or a Range-Rover might have on an "average" figure, whatever this is.... This story is just more shock horror disinformation bowlax. Come on Autocar, where's your balanced analysis?