Car industry prepares for ‘devastating’ no-deal Brexit

Britain’s automotive industry is preparing a contingency plan to help smaller motoring outfits survive the predicted effects of a no-deal Brexit.

The Society of Motor Manufacturers and Traders (SMMT), a trade association for the UK’s motoring industry, believes small and medium-sized enterprises (SMEs) lack the resources to prepare for a no-deal split, with 69% of these firms employing fewer than ten people.

The SMMT is launching a “Brexit Readiness Programme” that will see major corporations, such as Deloitte and PwC, provide advice and consultancy services for SMEs, says Auto Express.

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The SMMT plans to assist SMEs prepare trade and tax arrangements after Brexit comes into effect in March. It will also help with regulation changes related to chemicals, immigration laws, data protection changes and employment rules, the motoring magazine says. A free Brexit helpline will be provided.

“A strong local supply chain is the backbone of any manufacturing sector, and ours has thrived thanks to massive re-shoring efforts and the ability to trade freely and frictionlessly with the EU”, says Mike Hawes, the SMMT’s chief executive.

Hawes warns that a no-deal Brexit could have “devastating consequences” for the motoring trade. As a result, he is urging businesses to plan for “all eventualities, including the worst.”

“Our new support package seeks to mitigate the threat of ‘no-deal’ by helping businesses navigate the complex trade realities of a post-Brexit landscape”, he says.

Although the SMMT’s efforts are aimed at smaller companies, Britain’s major motoring firms are also very concerned about the impact of a no-deal Brexit.

Last month, Jaguar Land Rover chief Ralf Speth told Theresa May at a car industry summit held by the Government that “tens of thousands” of jobs could be at risk if she failed to reach a deal with the EU, The Guardian reports.

“What decisions will we be forced to make if Brexit means not merely that costs go up, but that we cannot physically build cars on time and on budget in the UK?”, he said.