German carmakers have warned of a no-deal Brexit in terms of its effects on manufacturing in the UK and exports from the European mainland.
In 2016, Britain was the largest single export market for German manufacturers, who sold 800,000 new cars there. German auto industry association VDA stated: “The consequences of a ‘no deal’ would be fatal. Without an orderly and practical solution for business, jobs in the car industry, particularly on the British side, are on the line.”
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BMW, which builds 60% of its Mini vehicles at a plant in Oxford, extensively uses components imported from BMW’s German plants. Around 80% of vehicles assembled in the country are exported, mostly to the European Union.
Following the vote on a Brexit deal in Parliament which led to a heavy government defeat, Sue Robinson, director of the National Franchised Dealers Association which represents franchised car and commercial vehicle retailers in the UK, said: “The UK is the second largest car market in Europe with £35.3bn worth of cars imported from Europe and the retail automotive sector employing 555,000 people directly in the UK. The NFDA urges the Government to take all necessary steps to ensure that our industry is protected. Businesses and consumers need clarity about the Government’s future plans.”
BMW, Volkswagen and Daimler, parent company of Mercedes-Benz, also urged clarity over Brexit and the continuation of tariff-free trade between the UK and the European Union.
A BMW Group statement said: “Uncertainty is not good for business. We must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent. We strongly urge all relevant stakeholders to do everything possible in order to establish much needed certainty for our business and to maintain the truly frictionless trade on which our international production network is based.”
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By GlobalDataThe Society of Motor Manufacturers and Traders (SMMT) has also continually issued strong warnings against a no-deal Brexit. In November 2018 the UK trade body met with EU representatives in Brussels to highlight the economic importance of the integrated European automotive industry and set out the repercussions for businesses, economies and jobs in the event of the British government failing to reach an agreement with the European Union before its departure.
