Britain leaving the European Union single market could “threaten the viability of the automotive industry”, according to Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes.
In a speech yesterday, Prime Minister Theresa May said Britain’s exit from the EU would require it to leave the free-trade zone and that the government would be pushing for the "freest possible trade".
Mike Hawes commented, “The recognition by the Prime Minister of the importance of single market arrangements for the automotive sector is critical. We need government to deliver a deal which includes participation in the customs union to help safeguard EU trade, trade that is tariff-free and avoids the non-tariff and regulatory barriers that would jeopardise investment, growth and consumer choice. Achieving this will not be easy and we must, at all costs, avoid a cliff-edge and reversion to WTO tariffs, which would threaten the viability of the industry.”
The SMMT has previously stressed the importance of a free-trade deal and warned of tariffs that could cost the UK car industry £4.5 billion a year.