Britain's carmakers issued a stark assessment Thursday about Brexit's impact on the industry, warning that two-thirds of the country's global trade is at risk if the UK leaves the European Union without an agreement on future trade.
Investment in the industry fell 46 percent last year and new car production dropped 9.1 per cent to 1.52 million vehicles in 2018, in part because of concerns over Brexit, the Society of Motor Manufacturing said.
Chief executive Mike Hawes has described the threat of a no-deal as "catastrophic." "With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert," Hawes said.
"Brexit uncertainty has already done enormous damage to output, investment and jobs." Hawes said the figures showing a drop in investment, stark though they are, pale in comparison to what is ahead should the UK leave the EU on March 29 without a deal, severing frictionless trade links overnight with the EU and other global markets.
Britain's Parliament has refused to rule out a no-deal Brexit, voting this week instead to give Prime Minister Theresa May more time to try to iron out a compromise with the EU.
"Given the global headwinds, the challenges to the sector are immense," Hawes said. "Brexit is the clear and present danger and, with thousands of jobs on the line, we urge all parties to do whatever it takes to save us from 'no deal.'"
EU leaders have so far expressed an unwillingness to reconsider opening up the withdrawal agreement. In a telephone call on Wednesday evening, Irish Prime Minister Leo Varadkar told May that it was necessary to have a backstop that was "legally robust and workable in practice."
European Council President Donald Tusk also spoke with May and later tweeted: "The EU position is clear and consistent. The Withdrawal Agreement is not open for renegotiation."
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