European automotive industry warns of ‘catastrophic’ consequences of ‘no-deal’ Brexit

On Monday, the major automotive trade groups of Europe have joined forces for warning about the terrible consequences of having a “no-deal” Brexit.

Industry groups throughout Europe along with twenty-one national auto associations such as the Society of Motor Manufacturers and Traders of the United Kingdom has said that new tariffs on cars as well as vans might cost the EU and the U.K. industry around 5.7 billion euros (6.3 billion dollars) if the United Kingdom left the European Union prior to an agreement.

Consumers shall have to face higher prices in case manufacturers were not able to absorb the additional costs.

The United Kingdom is due to leave the European Union on 31st October, and the Prime Minister of Britain, Boris Johnson has said that it will do so no matter what happens. If the country leaves without a deal on the issues like its divorce bill from the European Union, tariffs that are governed by the WTO, the border between Ireland and Northern Ireland and the rights of the citizens, would have to be imposed.

The President, Christian Peugeot, of the Committee of French Automobile Manufacturers has said that Brexit was not just problem for the British. Everybofy was concerned in the European automotive industry and even beyond that. He added that both the exporters to the market of the United Kingdom and the local producers will be inevitably affected negatively.

The automotive industry, including the associated suppliers, was a European success story that was producing slightly over 19 million vehicles every year and employing almost 14 million people.