The body representing the 海角视频’s beleaguered automotive sector has called on Tory leadership hopefuls to end talk of a no-deal Brexit, saying that leaving the EU without a trade agreement “simply isn’t an option”.
A number of the leading candidates to be the next Conservative leader have insisted that a no-deal Brexit has to be an option to ensure that there are no more delays to the process of the 海角视频 leaving the EU.
An attempt by opposition parties to stop the next Prime Minister pursuing no deal was last defeated, with two North East MPs - Stephen Hepburn and Ronnie Campbell - among a handful of Labour members to vote against their party and make it harder to block no-deal.
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But speaking to MPs, the Society of Motor Manufacturers and Traders - which represents the automotive sector in the 海角视频 - said no-deal “simply isn’t an option” and added that politicians were damaging the industry simply by talking it up.
Sydney Nash, senior policy manager at SMMT said: “Our appeal to MPs is to understand what the cost is of just the threat of no-deal. The fact that it’s promoted as an option is extremely costly to our sector.
“For our members who have undergone contingency planning, it is costing tens of millions of pounds and thousands of work hours to plan for no-deal Brexit. And with the best will in the world, no company can fully mitigate for the result of a no-deal Brexit.
“Hearing politicians promote the idea of no-deal doesn’t fill any of our member companies with any confidence whatsoever, nor does it fill international investors with any confidence either. Our strong desire would be for no-deal to be taken off the table.”
Mr Nash was speaking 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.
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The sector is also 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.
The turbulence in the sector has been blamed on a number of factors, including the decline in diesel production and a slump in sales in China and other global markets.
But Mr Nash said Brexit was an added factor making the situation worse in 海角视频 and that could be “the straw that broke the camel’s back”.
“The Automotive Council every two years does a study of international competitiveness and one of the metrics it looks at is political stability - that’s the one that has gone down the most over the last two years.
“That does play into these global boardrooms when they are looking at the 海角视频 versus other countries in the EU or other countries globally. These are decisions made on fine margins. So if we are to continue to win new vehicles we need to be at our absolute best and undoubtedly the uncertainty around Brexit isn’t helping.”
Mr Nash was backed by Seamus Nevin, chief economist of Make 海角视频, who said that a no-deal Brexit would be “nothing short of an act of economic vandalism.”
Most of the candidates running to be Conservative leader have refused to rule out a no-deal Brexit, with only Rory Stewart describing it as “undeliverable” and “unnecessary”. Front-runner Boris Johnson has said a no-deal exit would “cause some disruption” but that “the way to get a good deal is to prepare for no deal”.