EU carmakers with British counterparts have warned that a no-deal Brexit will cause a loss of trade of £100bn over the next five years.
Automotive leaders fear trade tariffs will cause prices to climb and subsequently cause a drop in demand by consumers.
EU carmakers and British counterparts said in a joint letter, that this could cost car plants £50bn, with the UK factories losing £48bn.
It was estimated that around 3m cars were scheduled to be built by 2026, this is now likely not going to happen, which could also affect 14.6m jobs across Europe which will have “severe repercussions.”
The letter signed by 23 automotive industry associations said, “Any deal should include zero tariffs and quotas, appropriate rules of origin for both internal combustion engine and alternatively fuelled vehicles, plus components and powertrains, and a framework to avoid regulatory divergence.
“Crucially, businesses need detailed information about the agreed trading conditions they will face from 1 January, 2021 to make final preparations.”
Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes said, “These figures paint a bleak picture of the devastation that would follow a no-deal Brexit.
“The shock of tariffs and other trade barriers would compound the damage already dealt by a global pandemic and recession, putting businesses and livelihoods at risk.
“Our industries are deeply integrated, so we urge all parties to recognise the needs of this vital provider of jobs and economic prosperity and pull out every single stop to secure an ambitious free trade deal now, before it’s too late.”