industry

Brexit blow to car industry as EU rejects crucial UK plan to avoid export tariffs

The EU wants to prevent the UK being an offshore assembly hub – as it seeks to woo manufacturers across the Channel (PA)
The EU wants to prevent the UK being an offshore assembly hub – as it seeks to woo manufacturers across the Channel (PA)

Brexit has delivered another blow to the struggling UK car industry after the EU rejected a crucial UK plan to avoid tariffs on exports.

Ministers had asked for parts brought in from Japan, South Korea or Turkey to be treated as British, to qualify under strict rules-of-origin if a trade agreement is struck.

But, in a letter to car bosses, Britain’s chief Brexit negotiator has admitted he has failed to persuade the EU to accept the proposal – and “obviously cannot insist on it”.

It means exports now face tariffs unless the majority of their value originates from the UK or EU. Typically, the figure is only 44 per cent for a car assembled in this country.

The EU rejected the idea because it saw the UK

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No-deal Brexit and Covid threaten ‘double whammy’ for car industry

UK and European carmakers have warned a no-deal Brexit could put a £100bn dent in the region’s car industry in the next five years, adding to heavy losses already caused by Covid-19.

A letter signed by 23 trade groups across Europe urges the government to make a deal rather than default to World Trade Organization (WTO) rules.

It says without one, there will be a “catastrophic” rise in tariffs.

A government spokesperson said it was “working hard” to reach an agreement.

The industry has already taken a £90bn hit this year because of Covid-19, the SMMT added.

The UK left the European Union on 31 January, but will enjoy tariff-free trade with the bloc until the end of the year as part of the transition period.

But fears are growing that both sides will be unable to strike a longer-term trade deal by then.

The European Automobile Manufacturers Association (ACEA),

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Car industry no longer growth engine of German economy

Germany’s mighty car industry, which has been hit particularly hard by the coronavirus pandemic, is no longer the engine driving the country’s economy.

“For the first time in a decade, the auto industry is facing noticeable personnel adjustments and will initially fail as a growth engine for Germany,” says a new study by the German Economic Institute (IW), reported exclusively by Handelsblatt.

The results of the IW study are likely to hang over the meeting on Tuesday this week between the German government and the heads of the countries powerful car companies and automotive suppliers.

Already before the global COVID-19 pandemic hit, the automotive industry was struggling with overcapacity, as well as the need to invest billions to switch to electrification, and get their fleet emissions down in the face of tough new EU emissions standards.  

READ MORE: German car industry warns of job losses due to ‘unprecedented slump’

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Automotive industry rebound falters in August as sales slip

The U.S. auto industry took yet another tumble in August. Those manufacturers who still announce their sales figures at the end of each month reported declines pretty much across the board. Per industry analysts, transaction prices slipped slightly in August compared to July as well, despite a nearly 4-percent increase over last year’s average. There were two fewer selling days in August this year, contributing to reported declines. 

Toyota on Tuesday reported a 23% drop in U.S. new vehicle sales in August versus the same month in 2019, as a two-month industry-wide shutdown of auto production in the spring to halt the spread of COVID-19, as well as an uncertain economic recovery, weighed on sales. This was Toyota’s fifth straight month of U.S. sales declines.” data-reactid=”21″Toyota on Tuesday reported a 23% drop in U.S. new vehicle sales in August versus the same month in 2019, as a two-month industry-wide

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