As marked by, Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), the UK car makers are not ready to participate in Brexit. The industry came on the following decision forthwith the UK withdrew from the European Union. It was an increasing concern amid the industry men about the disruption that can be caused by the cross-border trade.
The situation steamed up when, last month, nine out of ten cars exported which were reserved for the European Union. UK’s vehicles output witnessed a crash by 47 percent whereas there was a 6 percent hike in the exports. It is the industry’s ‘reminder of the exports-led nature’, as stated by Mark Hawes.
Elucidating about no UK carmaker to take part in Brexit, Mark said, “No one would profess to be Brexit-ready because there are too many variables in there.” He is concerned about how if there is no deal, no transition, and no implementation period; it would crash down in a time span of as low as 8 months. He added, “You can operate on WTO (World Trade Organisation) rules but it would be at a significant extra cost and burden than we currently enjoy.”
The whole union is being called repeatedly with a warning of risk of thousands of jobs, if made delay. Several leading firms are anxious about how all this will result in, as investments have already been pulled off from one of the deals. Meanwhile, automobile giants, Jaguar and Land Rover are indicating their possibility of pulling out of the UK.
Hawes notified about how the carmakers would have to search for ways in order to side-step production lines and it will eventually lead to a long-term decline for the industry. He warned, “Given the cost of stopping production, manufacturers will do everything they can to stop that happening. This would cost millions of pounds per day.”