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Mini-production in the UK: Not only on the island, the car manufacturers fear in a Brexit contract without chaotic conditions
A Brexit without a contract would threaten the entire business model of the industry from the point of view of the European auto industry.
Before the EU summit this Wednesday evening, the European car manufacturers’ association Acea made a dramatic appeal to the heads of state and government: “The clock is ticking, but it’s not too late.” The negotiating teams would have to double their efforts to successfully conclude a withdrawal agreement.
Every day, 1,100 trucks with parts just for just-in-time UK production crossed the English Channel, Acea said. If they were stopped after the Brexit only briefly at the customs, that would cause massive logistic problems, cracks in the production chain and immense costs.
The companies prepared themselves with contingency plans and looked for bearings to bridge them. “But the hard truth is that even the best contingency planning can not realistically close the gaps if Britain leaves the EU based on WTO rules,” said Acea General Secretary Erik Jonnaert.
Jaguar Land Rover had recently warned against Brexit without a contract. Tens of thousands of jobs in the British auto industry would be in this case on the edge, said Ralf Speth, boss of the British manufacturer. Jaguar Land Rover is currently working in a factory until December only three days a week.
If London and Brussels can not agree on a treaty, then after 29 March 2019, the rules of the World Trade Organization come into force.