SMMT says lack of Brexit progress risks 'destroying' motor industry
Industry body 'exasperated' with political infighting
Motor manufacturers became the latest lobby group to demand the government avoid a no-deal’ Brexit, saying they were “exasperated” with the current lack of political progress.
The Society of Motor Manufacturers and Traders (SMMT) said the failure to make headway at Westminster on a deal risked “destroying the automotive industry” and adding £4.5bn in costs through tariffs.
In a statement released on Thursday, the SMMT said EU-based suppliers sent more than 1,100 trucks into the UK every day delivering some £34m worth of parts.
“This success has been dependent on free and frictionless trade afforded by the single market and customs union. A no-deal Brexit threatens the viability and, therefore, the future of this critical UK sector,” the trade body said.
The intervention comes a day after five of the UK's leading employer groups also expressed their irritation at government talk of a “managed” no deal exit.
The SMMT said delays at the border would “fundamentally undermine just-in-time manufacturing stopping production”.
“It is the responsibility of all politicians to rule out no-deal and all effort should be focused instead on delivering a deal that provides for a status quo transition and a future relationship with the EU that has frictionless trade at its heart,” the SMMT said.
Chief executive Mike Hawes said there was “no such thing as a ‘managed’ no deal".
"We would face immediate delivery shortages, additional costs and uncertainty, which will seriously damage our sector. Both government and parliament have a responsibility to take this option off the table or risk destroying this vital UK industry.”
On Wednesday the CBI, Institute of Directors, British Chambers of Commerce, Federation of Small Businesses and the manufacturing body EEF said firms were “watching in horror” as political infighting was being put ahead of securing a Brexit deal.
Cabinet ministers agreed to a ramping up of preparations for a no-deal Brexit, including putting 3,500 armed forces personnel on standby.
A vote on Prime Minister Theresa May’s deal is not due until mid-January in the face of stern opposition from Conservative MPs. Ministers agreed to allocate an extra £2bn to 25 Whitehall departments to get ready for Brexit.