The European Association of Automobile Manufacturers (ACEA) called the trade deal between the European Union and the United Kingdom “a great relief for European car manufacturers, allowing the industry to avoid catastrophic consequences.”
“There is no other industry more integrated than the European auto industry, with complex supply chains stretching across the region,” explained ACEA CEO Eric-Marc Huitema.
However, ACEA notes that it cannot fully assess the implications of the deal until all the technical details are released. Only at this stage will it become clear whether this deal fully reflects the interests of EU carmakers and their supply chains.
“The impact of Brexit without a deal on the EU auto industry would be devastating, so we are, first of all, very pleased that an agreement was reached before the end of the transition period,” Whitema said. “However, serious challenges lie ahead as trade in goods will be heavily impacted by trade barriers in the form of new customs procedures that will be introduced on January 1, 2021.
In fact, with around 30,000 parts used to build a single vehicle - and many more in commercial vehicles - the automotive industry relies heavily on uninterrupted and on-time delivery.
Mutual trade in vehicles between the EU and the UK is more than 3 million units worth 54 billion euros, and trade in auto parts from continental Europe with the islands is almost 14 billion euros.
