Brexit as damaging to the automotive industry, says SMMT president

The negative effects of Brexit as they are feeling and emphasize the need for more rapid negotiations of the government, of the Society of automobile Manufacturers president Tony Walker said.

During his speech at the 101st annual SMMT dinner, Walker said that great Britain, the automobile industry requires hard answers and the certainty that the government, in order to avoid the trend of falling consumer confidence and the slowdown of automobile sales to reach a critical point.

“We [the industry] will never stop striving to be competitive,” he said, “but we ask government to help provide the conditions in which we can compete. Like any industry, we need certainty now.”

Brexit has been directly linked to the fall of the domestic demand for new cars, which decreased by 2.9% in October and has only seen the predictions of the nation in vehicle production output to fall by 700,000 units by 2017 to 1.73 billion euros. Exports of British-built cars, by comparison, a 5% increase in the past month, ensuring that the nation’s total output actually grew by 3.5% in the four months.

Walker revealed that 1100 trucks, supply parts of Europe for the automotive industry by day, with the majority arriving without any kind of customs controls. HM Revenue and customs figures show that these contribute £35 million of components for car plants a day, with almost 80% of the cars that help to make that is exported – most to Europe.

These close ties with Europe for the supply and export, Walker explained, to highlight the importance of the fixing of a tariff-free deal with the continent. If there is no agreement, great Britain out of the European Union on the 29th of March 2019, may leave the industry is faced with at least £4.5 billion dollars of the World Trade Organization, the tariffs for the year.

“We delivered an export-led renaissance,” said Walker. “But we’re not satisfied. A hard Brexit would undermine everything we have achieved collectively. It is a real threat – an obstacle that we cannot ignore.”

Next to your calls to streamline the negotiations, Walker also asked that the government understands the importance to the further development of combustion engines in order to the rate of progress in green technology. In response to the uk’s recent announcement of a ban on pure petrol and diesel cars from 2040 onwards, said that “the internal combustion engine is not dead – it is the way for a future more clean and more green.

“The ban petrol and diesel cars can be a sound bite that works, but is not a policy that works. If the prohibition on disrupting the new car market, and hamper the investment in the all-electric, zero-emissions vehicles in the morning. Set back in the future.”

SMMT CEO Mike Hawes took things further in his speech, the announcement that the government of the movements could be catastrophic. He said: “the uk Automotive is a great technology. And we are very good in internal combustion engines, in particular – just look at Formula One for the test. However, we seem to be bent on destroying the reputation.

“We say to the world that we want to ban petrol and diesel cars in the year 2040. We present taxes, levies and budgetary measures that ignore the technological development, which undermine our industrial capacity and to demonize a technology, diesel, despite the benefits it offers to the consumers. Customers do not move directly from diesel to electric. They are moving to the gasoline or to stay in their older cars. Then, we are seeing a fall in the market, the decline in revenue, increased costs, the increase of CO2 emissions. This is not a policy without consequences.”

Hawes, said that the Government of the united kingdom “a dose of reality”. He said: “the industry is nimble, can adapt. But the needs of the certainty sensitive to the time-limits of implementation and support conditions”.

The foreign minister Phillip Hammond’s recent diesel tax is the latest in a line of government moves that have affected the automotive industry. Hammond reveals that a tax increase will apply to new diesel cars that do not conform to the next generation of emissions testing standards, which in and of itself shall not enter into force until 2020.

SMMT CEO Mike Hawes stated that the new law, which has been introduced to reduce the number of diesel vehicles on Britain’s roads, would hinder the ability of the industry and the government to achieve the CO2 limits”. He said that the orientation of the most recent and the most low-polluting models was not the most effective way to reduce the growing problem of air quality.

More content:

Comment: Can hipsters save the car industry?