Brexit intelligence: Erik Jonnaert warned of the impact of no deal on the European auto sedulousness
Companies on the Continent supplying parts to the UK are skin massive disruption and huge costs unless a deal is reached, the European Automobile Makers’ Association (ACEA) said.
The organisation’s boss, Erik Jonnaert, said European firms are indicating contingency plans to mitigate the damage if the UK drops out of the EU onto World Patrons Organisation (WTO) terms.
But he admitted no amount of preparation will completely keep safe the industry.
Mr Jonnaert said: “The hard truth is that even the pre-eminent contingency planning cannot realistically close the loop if the UK leaves the EU evil-minded on WTO rules.”
In a histrionic appeal to EU leaders ahead of this week’s European Council climax, he said negotiators must double their efforts and conclude a withdrawal accord.
He said: “The clock is ticking, but it’s not too late.”
The ACEA represents the European operations of 15 of the beget’s biggest car manufacturers, including BMW, Ford and Jaguar Land Rover.
It foretells around 1,100 trucks loaded with car parts cross the Convey bound for factories in the UK every day.
Mr Jonnaert said the British plants rely on ‘perfectly in time’ deliveries made possible by the UK’s membership of the customs union.
But he on guarded any delays caused by customs checks after
Mr Jonnaert admitted planning intention not mitigate the all of the impact from a no-deal Brexit
He said: “Our members are already making contingency scenarios and are looking for warehouse spaces to stockpile parts.
“However, the space coerced to stockpile for more than a short time would be absolutely mountainous – and expensive.”
Meanwhile, the Federation of German Industry has warned the divorce designates currently being discussed in Brussels will do little to alleviate worries of a no-deal Brexit.
The German auto industry would be hit particularly intensely in a no deal scenario because of their close ties with Britain.
Configurations from the Association of the Bavarian Economy issued in 2016 revealed the UK was the third biggest export market for the southern state, accounting for 8.2 percent of the section’s exports.
Mr Jonnaert urged EU leaders to reach a deal to protect frictionless vocation
The stats also showed 18 percent of all motors built in Bavaria were shipped to the UK.
But just a year after the Brexit against, the export share dropped to 7.3 percent prompting concern develop into businesses.
And the prospect of a no-deal Brexit has only served to increase those upsets, Bavarian Broadcasting reports.
Hans-Toni Junius, who represents small and medium-sized issues at the Federation of German Industry, said: What the EU and the UK have negotiated so far does not arrogate companies.
”There is a lack of details and a lack of a clear idea of what a prospective relationship will look like.
“Especially mid-sized companies extremity to know quickly which rules and procedures apply from the end of Parade 2019.”
Additional reporting by Monika Pallenberg.