In the absence of a month for the United Kingdom to leave the EU, the European car industry has made a unanimous call for the United Kingdom and the EU to avoid Brexit without agreement. The main organizations representing vehicle and spare parts manufacturers across the EU, the European Association of Automobile Manufacturers, ACEA, and the European Association of Automobile Suppliers, CLEPA, as well as 21 national associations, including the Association German Automobile Industry, VDA, the Committee of French Automobile Manufacturers, CCFA, the Society of Automobile Manufacturers and Traders, SMMT, and the Spanish Association of Automobile and Truck Manufacturers, ANFAC, they have joined forces to underline the impact that a hard Brexit and without agreement could have on one of the most valuable economic assets in Europe.
Car industry It is one of the biggest success stories of the EU and contributes to the growth and economy of the countries. It produces 16.5 million cars a year and employs 13.8 million people., One in 16 EU workers. The deep integration of the industry, in terms of markets, commerce and suppliers, which has tried to maximize the benefits of a single market and the customs union for the benefit of companies across the EU, has been fundamental.
Representatives of European industry have warned that the impact of Brexit without agreement in this important sector will be very serious. The exit of the United Kingdom from the EU without an agreement would cause a radical change in the current commercial conditions, with billions of euros of tariffs, which would threaten to affect the competitiveness and affordability of the industry and the choices of consumers on both sides of the Canal. The end of trade without barriers could mean a serious alteration of the current just-in-time production chain of the industry. Only one minute of production interruption in the UK could cost 54,700 euros, 50,000 pounds sterling.
In addition, WTO tariffs on cars and vans could add 5,700 million euros, 5,000 million pounds, to the collective invoice of car trade between the EU and the United Kingdom, which would consequently raise the price of vehicles for customers in case manufacturers are not able to absorb this additional cost. Car manufacturers believe that such disorders and costs should be avoided, and every effort should be made to ensure that the United Kingdom leaves the EU in an orderly manner.
Christian Peugeot, president of CCFA, said: "Brexit is not just a British problem, we are all very concerned industry agents, and other sectors as well. Either as exporters to the UK market or as local producers, because our companies are both, we will inevitably be negatively affected. "
Bernhard Mattes, president of the VDA, highlighted: "We regret Brexit. The United Kingdom is a fully integrated actor in the value chain of the German car industry. More than 100 production plants, as well as facilities dedicated to R&D D located in the United Kingdom, demonstrate our commitment to the British market as our main market in the EU. Therefore, from the point of view of the German car industry, every effort must be made to maintain the free movement of goods , services, capitals and workers between the United Kingdom and the EU. At the same time, it is necessary to recognize the internal market and the cohesion of the EU-27 as a priority and a precondition. of the United Kingdom needs a frictionless trade and would be considerably harmed by the duties and additional administrative burden it would weigh on auto parts and vehicles Oomination: Therefore, the United Kingdom and the EU must take all necessary measures to avoid Brexit without agreement.
Mike Hawes, CEO of SMMT, said: "The European automobile industry is deeply integrated and the benefits of this free and friction free trade have helped our sector to become one of the most valuable assets in Europe, delivering thousands of millions to the economies and supporting millions of people across the EU A Brexit without agreement would have an immediate and devastating impact on the industry, ending its competitiveness and causing immediate, severe and irreversible damage. and the EU have a responsibility to work together to reach an agreement or risk destroying this vital pillar of our economies. "
Erik Jonnaert, ACEA Secretary General, said: "Trade without barriers is crucial to the continued success of a car industry deeply integrated in Europe, which manages some 230 assembly and production plants across the EU. Only Brexit already it will have a significant negative impact on the automotive sector and a Brexit without agreement would greatly exacerbate those consequences, causing serious consequences in an industry that is so vital to Europe's economy, including the repeated need to plan and implement contingency measures. to deal with a messy Brexit is very damaging to our members. Therefore, the European car industry asks all parties to discard this possibility of non-agreement as soon as possible ”.
Sigrid de Vries, general secretary of CLEPA, said: "The European car industry is operating with highly integrated global supply chains. A single vehicle consists of some 30,000 parts, many of which cross borders several times. Trade without friction and without tariffs, as well as regulatory security, are vital. Brexit has a negative effect on all these aspects. A Brexit without agreement will really be detrimental to the supplier industry in Europe and the United Kingdom. It should be avoided. "
The European automotive industry is highly integrated, with supply chains that cross multiple countries. A Brexit without agreement would mean that, immediately, the United Kingdom is no longer part of the trade agreements and preferential agreements of the EU with some 30 countries, including Turkey, South Africa, Canada, Japan and South Korea. Thus, the parts and goods of the suppliers of the United Kingdom would no longer count as “Content originating in the EU” for the purposes of the regulations of origin and their agreements. This will potentially make it difficult for European manufacturers to have access to the preferential terms of the EU trade agreements. In addition, a Brexit without agreement would make the EU market smaller and potentially less attractive to international trading partners.
At this time of intense global competition and technological transformation, car manufacturers in the EU and the United Kingdom need a Brexit agreement that keeps trade free and friction-free and allows them to continue investing, producing and selling competitively, and promoting cross-border technological collaboration. This will drive future innovation, benefiting consumers, societies and economies throughout Europe. With so much at stake, it is in the interest of all parties to avoid a Brexit without agreement and to deliver a managed withdrawal from the United Kingdom to the EU.
Mario Armero, executive vice president of ANFAC, said: “Spain is mainly a net exporter of vehicles to the European Union. The Spanish automotive industry sells two thirds of its production outside our borders. The United Kingdom is one of the main markets for these sales and, since Brexit was voted, exports have fallen exponentially. The establishment of tariffs and trade barriers worries us and harms the competitiveness of our factories and the development of our highly integrated supply chains. A Brexit without agreement will further worsen this trade and damage the entire production chain, in Spain and in Europe. ”
Gianmarco Giorda, director of ANFIA, said: “The United Kingdom is the third destination market for parts and components for motor vehicles and the fourth for automobiles. Therefore, it is relevant for the Italian industry, especially for component suppliers that represent an important ally for local manufacturers. The introduction of new customs tariffs, long export procedures and higher prices could only have a devastating effect on the automotive industry, both for Italians and for the British. ”
Mattias Bergman, executive director of BIL Sweden, explained: “Sweden and our automotive industry strongly believe in free trade, where a barrier-free market is crucial for the automotive industry to continue contributing to society and economic growth in Europe. Brexit itself is negative for the industry and a "no-deal" will add a substantial risk and have a great negative impact not only on the industry, but throughout Europe. "
Claude Cham, president of FIEV, said: “At a time when the global economy slows and the production volumes of our industry decrease; and our entire ecosystem is focused on the main challenge of the new mobility, the Brexit in agreement will cause significant obstacles and no benefits, neither for the states nor for the citizens nor for the industries. Common sense says that global competitiveness is directly related to the size of a market, in which the United Kingdom in the EU is of paramount importance. This is even more important for the United Kingdom itself, which would be de facto relegated outside one of the largest markets in the world. Brexit without agreement will also directly affect Europe's ability to respond to its own environmental challenges and its global leadership by weakening its domestic market. ”
Fredrik Sidahl, executive director of FKG, highlighted: “The EU, which was founded on the basis of peace between countries, has become over the years a fundamental region for the automotive industry. For Sweden, as part of the EU and extremely dependent on export, the EU is the main market. Among all EU states, the United Kingdom is one of our main individual markets for vehicles and components and we must, by all means, avoid hard Brexit for both Sweden and Europe. The automotive industry, the flow of parts and research programs are closely linked to each other, and a divorce between the United Kingdom and the EU will dramatically change this for the worst case scenario. ”
Luc Chatel, president of PFA, has underlined: “Brexit will have a great impact on the entire automotive sector in France, on manufacturers and suppliers. The impact will be direct in terms of tariffs, customs procedures, logistics, industrial location decisions, etc. And there will also be an indirect impact, as for all economic sectors, due to the foreseeable slowdown in European growth. ”
Alfred Franke, president of SDCM, said: “A Brexit without agreement, coupled with the worrying symptoms of a slowdown in the world economy, global trade tensions between the United States and China, as well as the challenges facing our industry could lead to a serious slowdown in the European automotive industry, one of the most important industries in the EU. Therefore, every effort should be made to ensure that the United Kingdom's exit from the European Union is preceded by an appropriate agreement that protects us from a possible catastrophe. ”
The 23 Signatory Automobile Associations:
ACAROM (Romania); ACEA (Europe); AFIA (Portugal); AIA (Czech Republic); ANFAC (Spain); ANFIA (Italy); AUTIG (Denmark); BIL SWEDEN (Sweden); CCFA (France); CLEPA (Europe); FEBIAC (Belgium); FIEV (France); FKG (Nordic countries); FFOE (Austria); ILEA (Luxembourg); OSD (Turkey); PFA (France); SDCM (Poland); RAI (Netherlands); SMMT (United Kingdom); SERNAUTO (Spain); TAYSAD (Turkey); VDA (Germany)