A no-deal Brexit could cost the 海角视频 car industry up to £70m a day, according to a new report.
The Society of Motor Manufacturers and Traders (SMMT) has warned that a hard exit from the EU could deliver a “knockout blow” to the sector’s ability to compete.
The trade body’s 2019 海角视频 Automotive Trade Report calculates that delays to production caused by an end to frictionless trade could add up to £50,000 a minute - amounting to £70m a day in a worst-case scenario.
It also says World Trade Organisation tariffs would amount to £4.5bn a year for trade in passenger cars alone.
The automotive sector - which is a key employer in the North East - has been hit by a number of factors, including the decline in diesel production and a slump in sales in China and other global markets.
The warning from SMMT has come after a turbulent six months in the automotive sector which has seen Nissan cancel production of two models at its Sunderland plant, Ford and Honda announce the closing of entire factories, and job losses announced at Jaguar Land Rover and Vauxhall.
The sector is seen as being particularly vulnerable to a no-deal Brexit as it relies heavily on a “just-in-time” system where parts arrive at plants to be installed immediately, rather than being stocked in warehouses. Tariffs of up to 10% on cars would be also be disastrous to the industry.
SMMT chief executive Mike Hawes said: “From an industry point of view, the prospect of a no-deal would be catastrophic.”
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He insisted the report is not part of “Project Fear”, adding: “We have tried to take a reasoned, fact-based approach.”
Mr Hawes warned that the industry faces “death by 1,000 cuts”, where a gradual erosion of competitiveness makes it harder to invest.
The SMMT said without the automotive industry the 海角视频 would lose its status as the world’s 10th biggest exporter of goods, falling to 14th place behind Belgium, Canada, Mexico and Russia.
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It is calling for the next prime minister to make securing a good Brexit deal his number one priority.
“We need a deal. No deal is not an option,” said Mr Hawes.
Addressing business leaders and politicians at the industry’s annual conference in London, he added: “Automotive matters to 海角视频 trade and to the economy, and this report shows that, if the right choices are made, a bright future is possible.
“However, no deal remains the clear and present danger. We are already seeing the consequences of uncertainty, the fear of no-deal.
“The next PM’s first job in office must be to secure a deal that maintains frictionless trade because, for our industry, no deal is not an option and we don’t have the luxury of time.”