At the Paris Motor Show, carmakers have yet again warned that a No deal Brexit could lead to massive production cuts in the UK. Some also said that they would be forced to move production out of the country.
British manufacturers have been worried over a host of issues such as tariffs, port hold-ups among others in case the deal goes sour. Given there is less than six months left for the due date of Brexit, uncertainty among businesses seems to be growing with every passing day.
The auto industry has been the backbone of UK’s manufacturing sector since the past few years. A hard Brexit could mean that auto manufacturers could face several problems such as bottlenecks in supply chain, difficulty in movement of finished vehicles to and from continental Europe.
Harald Krueger, CEO of the BMW Group, said that there is a 50:50 chance of having a No deal Brexit which could lead to the shift of manufacturing of MINI vehicles from UK’S oxford plant to Netherlands.
“I told Theresa May (UK Prime Minister) and the European Union that if there is a hard Brexit, both sides are losers. We will no longer fulfil trade agreements and then we are forced to build the car in the Netherlands,” Krueger told journalists at the Paris Motor Show.
Groupe PSA Chief, Carlos Tavares told journalists at the show, “My plan is to tell Mrs May and Mr Barnier (the EU’s chief Brexit negotiator) that a no-deal (Brexit) is not acceptable.”
Earlier, British automaker, Jaguar Land Rover had said that it has been contemplating moving the production of new models as well as EVs outside UK in case of an unfavourable Brexit.
Daimler’s Dieter Zetsche also seemed to agree that the current situation involving Brexit negotiations were a cause of worry.
Carlos Ghosn, head of Renault-Nissan alliance believes, “We are in a situation where everybody is frozen.” He also appealed for more clarity regarding the ongoing situation.