ACEA warns EU car sector threatened by 'hard Brexit'

February 13, 2019
US automaker Ford, which employs 13,000 people in Britain including at this plant in Dagenham, East London, suggested on that a "hard Brexit" would cost it around $800 million

A hard, no-deal Brexit, could have "very dramatic" consequences for the European car industry, a sector leader warned Wednesday while unveiling the 2019 sales forecast.

Carlos Tavares, head of the French PSA group who also chairs the European Automobile Manufacturers Association (EAMA), also urged London and Brussels to reach a trade deal before Britain leaves the European Union on March 29.

"We can all feel we're heading for something bad (...) Everyone is getting ready for a ," Tavares told a press conference in Paris.

A "hard Brexit" would "be very dramatic for the European car industry," he warned.

The pound would likely fall "and it is very likely that a number of car manufacturers will have to increase prices to protect their margins, prompting a crash of the British market," Tavares said.

The press conference was called to unveil EAMA forecasts for 2019, with manufacturers expecting the European car market to remain "stable at best" with a growth figure of "less than one percent" this year.

The car industry relies heavily on just-in-time deliveries to factories and Europe-wide sales could be impacted more than most.

US automaker Ford, which employs 13,000 people in Britain, has also pressed Britain and the EU to reach a deal on preserving trade links ahead of March 29 deadline, sources close to the company said.

A "hard Brexit" would "be very dramatic for the European car industry," warned Carlos Tavares, head of the French PSA group who also chairs the European Automobile Manufacturers Association (EAMA)

Ford has briefed British Prime Minister Teresa May on what it might be forced to do in case of a "hard Brexit", including transferring production from Britain to Europe, sources added.

Ford suggested on January 24 that a "hard Brexit" would cost it around $800 million.

In Germany, the vital car industry would be hit the hardest with the possible loss of 15,000 jobs, many in Volkswagen company town Wolfsburg and at BMW's factory in Dingolfing, researchers at the IWH institute in Halle, eastern Germany, said Monday.

In Britain, Japanese carmaker Nissan said earlier this month that it will axe planned production of the X-Trail SUV in the Brexit-backing city of Sunderland, despite assurances from the government over consequences of the nation's EU exit.

Japanese carmaker Nissan said a hard Brexit would lead them to end planned production of the X-Trail SUV at its plant in Sunderland, in northeast England

Explore further: Nissan sparks Brexit shockwaves through UK auto sector

Related Stories

Sony to shift UK HQ to avoid Brexit disruption

January 23, 2019

Sony will shift its European headquarters from Britain to the Netherlands to avoid Brexit-related customs issues, but operations at its current UK company will remain unchanged, a company spokesman said Wednesday.

BMW to pause UK output of Minis after Brexit

September 18, 2018

BMW will stop production at its Mini factory in Oxford for several weeks to avoid supply disruption in case of a no-deal Brexit, the German auto giant said Tuesday.

Recommended for you

Galactic center visualization delivers star power

March 21, 2019

Want to take a trip to the center of the Milky Way? Check out a new immersive, ultra-high-definition visualization. This 360-movie offers an unparalleled opportunity to look around the center of the galaxy, from the vantage ...

Ultra-sharp images make old stars look absolutely marvelous

March 21, 2019

Using high-resolution adaptive optics imaging from the Gemini Observatory, astronomers have uncovered one of the oldest star clusters in the Milky Way Galaxy. The remarkably sharp image looks back into the early history of ...

Physicists reveal why matter dominates universe

March 21, 2019

Physicists in the College of Arts and Sciences at Syracuse University have confirmed that matter and antimatter decay differently for elementary particles containing charmed quarks.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.