The automakers in the UK have spent at least GBP735 million ($970 million) for the preparation of Brexit. They also warned that expenses would mount further if the UK and the EU were unable to reach a trade agreement. Nearly a third of the costs have been borne in 2020, with the industry shelling out to stockpile parts and prepare for new customs declaration.
According to the Society of Motor Manufacturers and Traders (SMMT), exiting the union would cost the industry around GBP47 billion ($61.86 billion) in lost sales of vehicles over the next five years. With less than eight weeks left before the expiration date of the Brexit transition on December 31, SMMT requested negotiators to discuss several matters, including a grace period of at least a year to secure suppliers declaration. This is important to prove the origin of their goods to meet local content standards.
In 2019, the UK built 1.3 million cars and exported more than 80% of them. The EU accounted for 55% of Britain’s auto export markets. The UK is also a car importer. In 2019, 85% of the 2.3 million cars sold in the UK were produced abroad.
