A No-Deal Brexit Could Slash UK Car Production By Over 30 Percent

If a No-Deal Brexit scenario comes to pass, UK car production could be in serious jeopardy according to data sourced by AutoAnalysis.

The study was commissioned by the Society of Motor Manufacturers and Traders (SMMT), with findings indicating that falling back on WTO rules would add a massive £3.2 billion ($4.1 billion) per year to car making costs in the UK, while annual output would drop to one million units by 2024.

The UK made 1.52 million cars in 2018, as reported by the BBC.

Also read: Elon Musk Says Brexit Made UK “Too Risky” For Tesla’s European Gigafactory

“A close trading relationship is essential to unlock investment so we can deliver our goals: cleaner air, zero carbon emissions, and the ability to go on building our products and marketing them globally,” stated SMMT chief executive Mike Hawes.

“Rather than producing two million cars a year by 2020, a no trade deal, WTO tariff worst case scenario could see us making just a million,” he added, while predicting that automakers that build cars in the UK could move production to “more competitive and welcoming locations”.

Right now, British car manufacturing has already been at its weakest for the first nine months of a year (since 2011), with 2019 being 15.6% worse statistically than 2018. Meanwhile, the likes of Honda and Ford have both announced plant closures this year, despite blaming factors other than Brexit.

As for the PSA Group, their decision on whether or not to keep the Vauxhall factory open in the UK is reportedly dependent on the final terms of Brexit.