Two automotive bodies in the European Union – the European Automobile Manufacturer’s Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) – are speaking out about the negative consequences the UK’s “Brexit” from the EU will most likely have on trade.
ACEA Secretary General Erik Jonnaert said recently that the automotive industry in the UK and EU is well integrated “from the economic, regulatory and technical points of view.” He continued: “Any changes to this level of integration will most certainly have an adverse impact on automobile manufacturers with operations in the EU or the UK, as well as on the European economy in general.”
In other words, it’s not just the automotive industry in the United Kingdom that will feel the sting of the country’s departure from the EU.
CLEPA Secretary General Sigrid de Vries holds a similar view, saying: “The EU Single Market represents a fundamental driver of global competitiveness. Vehicle manufacturers and component suppliers are entangled in a highly integrated manufacturing network spanning Europe.
“Tariff- and burden-free market access, as well as a stable and predictable regulatory framework, are crucial instruments to sustain the supplier industry’s technology leadership and secure investments and jobs.”
The ACEA and CLEPA say that negative effects of Brexit will impact tariffs, customs procedures, access to labor, and the regulatory framework the hardest. Reportedly, tariffs up to 10% could be levied against passenger cars, with 3 to 4% on parts and components, and anywhere from 10 to 22% on commercial vehicles.
Last year, more than half of all passenger cars and 90% of commercial vehicles built in the UK were exported to the rest of Europe.