Carmakers in Europe fear ‘earthquake’ at No-Deal-Brexit

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Billions in customs duties and more bureaucracy: 23 European automobile associations have issued a joint statement warning of the consequences of an unregulated Brexit.

European carmakers fear the consequences of Britain’s unregulated withdrawal from the EU. An economic “earthquake” threatens the car industry in the event of a no-deal break, according to a published statement by 23 European automobile associations. It was also joined by the Society of Motor Manufacturers and Traders, the British trade association.

Automotive Industry’s head the German Association (VDA), Bernhard Mattes, warned of the “considerable” effects of additional bureaucratic hurdles on the automotive industry. He called on Great Britain and the EU to take all “necessary steps” to avoid a “No-Deal-Brexit.” In their statement, the carmakers warn, among other things, against tariffs in the billions which would lead to considerable price increases for consumers in Great Britain and the remaining EU states.

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The President of the Committee of French Automobile Manufacturers Christian Peugeot said the Brexit was “not just a British problem.” Both exporters for the British target market and local producers would inevitably be negatively affected. According to the associations, Great Britain is the trade target of about ten percent of all vehicles produced on the European continent.

British Prime Minister Boris Johnson wants to implement the Brexit on 31 October, if necessary without an agreement with the EU. The British parliament, however, has passed a law to rule out a no-deal. Without a deal with Brussels, the resignation is to be postponed by another three months.