Peter Johnson, chairman of the Retail Motor Industry, called on the UK government to reach an agreement on a Brexit deal with the EU.
Speaking at the RMIF’s annual dinner in London, Johnson said: “It is vital that the government agrees a Brexit deal with the EU. If it cannot, then prices will rise as a result of the import tariffs that will be paid on vehicles and parts. It is in everyone’s interests that a future trade deal between the UK and EU removes these tariffs.”
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The RMIF said that businesses in the UK have sought clarity in the future terms of the trade with the EU since the referendum in June 2016, and on who will be legal recruits.
Johnson added: “Whilst we have been part of the EU, we have become accustomed to frictionless and tariff-free trade between the UK and the other countries of the EU. It has meant that automotive parts can be delivered quickly from wherever they are made or held in stock and vehicles can be ordered and transported across borders in minimal time.
“Considering the automotive sector provides direct employment for over 800,000 people, it is essential that the government makes a commitment to outline a clear and beneficial deal in order to ensure our industry has what it needs to secure its future success.”
The announcement follows the latest figures from the Society of Motor Manufaturers (SMMT), which showed that the UK new car market has declined 2.5% in the first three quarters of 2019.
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By GlobalData“September’s modest growth belies the ongoing downward trend we’ve seen over the past 30 months,” said Mike Hawes, chief executive of the SMMT. “We expected to see a more significant increase in September, similar to those seen in France, Germany, Italy and Spain, given the negative effect WLTP had on all European markets last year. Instead, consumer confidence is being undermined by political and economic uncertainty.
“We need to restore stability to the market which means avoiding a ‘no deal’ Brexit and, moreover, agreeing a future relationship with the EU that avoids tariffs and barriers that could increase prices and reduce buyer choice.”
