Is ‘A No deal’ Brexit A Catastrophic Blow To The British Auto Industry?
According to a recent SMMT Brexit impact survey, three quarters of UK automotive firms have said that a ‘no-deal’ Brexit would be a catastrophic for the UK Automotive Industry. Half said they had already been affected by uncertainty, with one in five having lost business and a third cancelling or postponing their UK investment decisions altogether. Impact on profitability, ability to win overseas business, investment in UK operations and workforce cuts, were cited as the biggest ‘no deal’ concerns.
The Withdrawal agreement offers breathing space to negotiate ambitious future relationship and frictionless trade – essential to safeguard UK automotive industry and jobs. Three quarters of UK automotive businesses fear a ‘no-deal’ Brexit will threaten their future viability, according to a new member survey announced by the Society of Motor Manufacturers and Traders (SMMT) at its 102nd annual dinner in London recently. The results highlight the 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 its largest and closest trading partner, the EU.
74.1% of companies with UK operations responding to the survey said that a ‘no-deal’ scenario would damage their business, with fewer than 9.0% foreseeing any positive impact at all.
David Smith Chairman of FISC commented, ‘no one knows the real impact that a ‘no-deal’ Brexit will have in the long term. Most of the ‘experts’ were wrong about the impact the vote to leave would have, so who knows who to believe when they predict the future. One this is certain however, there will be pain in the short term particularly for our industry, so let’s hope that sense prevails and a deal can be done.’