The UK auto industry could suffer a £ 55bn manufacturing loss over the next five years if a Brexit deal is not agreed, the SMMT Automobile Manufacturers and Dealers Society says.
It urges the government to close a deal that will not apply tariffs under the rules of the World Trade Organization. A further blow from trade tariffs will further push back the sector badly hit by the pandemic, according to SMMT.
The UK is currently in a transition period, leaving the European Union on January 31, but this transition period ends in 38 days.
Moving out of a no-deal period that minimizes trade barriers, including tariffs, will "seriously impact the sector's ability to design and manufacture the next generation of zero-emission cars and vans, and curb the market growth of these vehicles," the Society.
The SMMT estimates that by 2025, World Trade Organization (WTO) tariffs will cost the UK auto business £ 55.4 billion, and annual production will fall below one million units.
British and European automakers have warned that a Brexit without a deal could damage the auto industry across the European region in excess of € 100 billion over the next five years.