Automakers fear catastrophes due to the exit of the UK from the European Union
The European Association of Automobiles and another 22 national associations issued a joint statement in which they prevent serious shocks for the industry if the UK leaves the EU without a transaction.
Car companies are confident that if Brexit passes without the conclusion of a compromise agreement, as planned now, the market is waiting for a catastrophe, which will be reflected first on European buyers, and then on all others.
Everything will begin with the more severe commercial conditions for doing business with the UK and multi-billion dollar taxes. The established uninterrupted trade in cars and spare parts will be destroyed. According to preliminary calculations, the «hard» brexit will lead to the fact that automakers will be forced to lose about 5.7 billion euros at customs. Machine production factories are on both sides of La Manches, and the company has already begun to declare their intention to close production sites due to the UK plan to leave the EU without agreement. European car dealers are preparing to increase prices after the new year.
British auto industry is also in decline: investments from January to June 2019 decreased by 70%. Due to taxes, consumers will be forced to change car preferences, and this will change the alignment of forces on the European car market. Unrest in the EU will affect other countries that import European production machines.