Key automotive aftermarket representative bodies and associations representing vehicle manufacturers from across Europe have come together to express their opposition to a no-deal Brexit which they say will cause massive disruption and drive up costs. 

Bodies such as the European Automobile Manufacturers Association (ACEA) and European Association of Automotive Suppliers (CLEPA), as well as 21 national associations have jointly stressed the devastating impact a no deal Brexit would have.

Mike Hawes, of the UK SMMT said, “European Automotive is deeply integrated and the benefits of free and frictionless trade have helped our sector become one of Europe’s most valuable assets, delivering billions to economies and supporting millions of livelihoods across the EU. A no deal Brexit would have an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage. UK and EU negotiators have a responsibility to work together to agree a deal or risk destroying this vital pillar of our economies.”

The scale of the issue is illustrated by the fact that the automotive industry across the EU employs13.8 million. Much of the huge economic turnover it brings is totally dependent on just-in-time logistics. In the UK it is estimated that an end to frictionless borders will bring major disruption, something that could stop UK car production in its tracks. Any stoppages are estimated to cost the industry around £50,000 per minute. Meanwhile it is estimated that reverting to world trade organisation rules would add £5 billion in costs to EU-UK trading.