“Some of our members are also planning a temporary post-Brexit production shutdown. But the harsh fact is that no amount of contingency planning can realistically cover all the gaps left by the UK’s withdrawal from the EU on WTO terms,” said Erik Jonnaert, Secretary General of the European Automobile Manufacturers’ Association

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Under WTO rules, a 10% tariff would be applied to all cars traded between the EU and the UK.

 

Jonnaert: “We cannot forget that profit margins in our industry are significantly lower than 10%. At the end of the day, these extra costs will either be passed on to the consumer or will have to be absorbed by the manufacturers.”

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“The clock is ticking, but it is not yet too late. That is why we are urging the negotiating teams on both sides to redouble their efforts to successfully conclude a withdrawal deal,” Jonnaert underlined.

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source: Press release on 17/10/2018 from European Automobile Manufacturers Association