BRUSSELS: The European auto industry on Monday warned of catastrophic effects of a no-deal Brexit, saying it would have a 'seismic' impact on making cars in Europe.
Reaping the benefits of the EU's single market, automakers have supply chains that criss-cross the English Channel and Britain is the destination of around 10 per cent of vehicles assembled on the continent, according to industry data. "The UK's departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel," the joint statement said.A chaotic Brexit would land a"severe" blow against the industry's just-in-time supply chains that stretch across international borders and depend on zero administrative hassle, the associations warned.
"Consequently, the UK and the EU should undertake all necessary steps to avoid a no-deal Brexit," he said.