UK businesses have rejected claims made by Michael Gove MP that the automotive sector said they were prepared for a no-deal Brexit, according to the BBC.
While discussing the impact of a no-deal Brexit in Parliament on Wednesday, Gove told MPs: “The automotive sector, who I met this week, confirmed that they were ready.”
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According to the BBC, three attendees at the meeting with manufacturers said that this was not an accurate reflection of the conversation. One business leader said: “I was at the meeting. There’s no way that is the message he could have gone away with.”
The meeting in question took place at the National Automotive Innovation Centre on Monday, with Aston Martin, Ford, Toyota and the Society of Motor Manufacturers and Traders (SMMT) in attendance.
When asked if Gove had been told by the industry that the car industry was ready, another person present at the meeting said: “No! We said we are planning as best we can, but cannot prepare for all eventualities and tariffs alone undermine our viability. We want a deal. No-deal is not an option. Catastrophic.”
Gove’s statement to Parliament comes the same week that leaders from across the European automotive industry warned of a ‘seismic shift’ in trading conditions should Britain leave the EU without a deal.
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By GlobalDataMike Hawes, chief executive of the SMMT, said: “European Automotive is deeply integrated and the benefits of free and frictionless trade have helped our sector become one of Europe’s most valuable assets, delivering billions to economies and supporting millions of livelihoods across the EU.
“A ‘no deal’ Brexit would have an immediate and devastating impact on the industry, undermining competitiveness and causing irreversible and severe damage. UK and EU negotiators have a responsibility to work together to agree a deal or risk destroying this vital pillar of our economies.”
