According to a new report by the trade body’s 2019 UK Automotive Trade Report, they have warned a no-deal Brexit could cost the UK car industry £70m a day.
The report has calculated delays to car production caused by an end to frictionless trade could add up to a staggering £50,000 per minute, in a worst case scenario.
“We need frictionless trade. Competitive, "Just in time" manufacturing doesn't work without it. Every minute of delay, of production stop, costs the industry £50,000 – every single minute” @MikeHawesSMMT #SMMTSummit https://t.co/qPNRFp1s5E pic.twitter.com/2EbCPZQMvu
— SMMT (@SMMT) June 25, 2019
The Society of Motor Manufacturers and Traders (SMMT) warned that a hard Brexit from the European Union could deliver a “knockout blow” for the industry’s ability to compete.
World Trade Organisation tariffs will amount to £4.5bn a year in trade just for passenger cars alone.
Mike Hawes, chief executive SMMT said, “From an industry point of view, the prospect of a no-deal would be catastrophic.”
Hawes insisted this is not “project fear” he said, “We have tried to take a reasoned, fact-based approach.”
Addressing the industry’s annual conference in London he added, “Automotive matters to UK trade and to the economy, and this report shows that, if the right choices are made, a bright future is possible.
“However, no deal remains the clear and present danger.
“We are already seeing the consequences of uncertainty, the fear of no-deal.
“The next PM’s first job in office must be to secure a deal that maintains frictionless trade because, for our industry, no deal is not an option and we don’t have the luxury of time.”