The major trade associations for the European and British car industries have negotiators from the European Union and the United Kingdom on Monday recalled come to an agreement. The sector may lose 110 billion euros in the next five years if a trade agreement is not forthcoming.
If the EU and the United Kingdom do not reach an agreement, resulting in a hard Brexit, three million fewer passenger cars and commercial vehicles may be produced. According to the sector organizations, this amounts to a setback of 52.8 billion euros for British factories. European production centers would go missing 57.7 billion euros.
In addition, the car industry would be hit twice in the absence of a trade agreement between the EU and the United Kingdom. The umbrella European interest group ACEA warns against this. Production is already hit hard this year due to the corona crisis: 3.6 million fewer vehicles are expected to be off the line in European and British factories.
“Our sectors are intertwined and we therefore call on all concerned to recognize the importance of the automotive industry for employment and economic growth and to do their utmost during the negotiations,” said the British trade association SMMT.
The call has been signed by a total of 23 industry associations, including ACEA and SMMT. The RAI Association has endorsed the message on behalf of the Netherlands.