Germany panic: BMW chief issues major Brexit warning – no deal will cost industry €11bn

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

Leading voices in Germany’s automotive industry has warned a no deal Brexit could cost car manufacturers and supplies a whopping €11billion. As a result, they are urging Britain and the EU to agree a tariff-free trade deal in the coming days and weeks.

Nicolas Peter, BMW’s finance director, aired the concerns during an online press conference.

He said: “The European Automobile Manufacturers Association (ACEA) has estimated that it could cost car manufacturers and suppliers from 10 to 11 billion euros, so we need tariff-free trade.

“And even then, it must be seamless.

“We have a just-in-time production system, so customs administrative processing must be efficient.”

In practice, the best solution would be to leave cross-border trade between the UK and other EU countries without customs tariffs, he said.

Britain would also need to ensure it follows current EU emission requirements, to ensure automakers can sell the same models in both Britain and the bloc.

If the UK leaves the bloc without a deal at the end of the year, trading goods will become protracted and delays inevitable.

Borders would be shut and all good would have to be checked going in and out of the UK.

JUST IN: Brexit deadline SNUBBED by stubborn EU – Barnier ignores Boris demands

This would cause long waiting times for both products and people.

New tariffs could also be levied against the UK, making the country an unattractive market for big car makers.

Cars made the UK would also struggle to be sold elsewhere.

Britain and the EU have yet to reach agreement on a post-Brexit trade deal, as the two sides fail to agree on a number of key areas.

Boris told to stick to Brexit threat if no deal struck this week [DETAILS]
EU panic: Germany loses cool over Brexit talks as Boris holds firm [INSIGHT]
Brexit LIVE: EU makes fishing POWER-GRAB as army of 50 UK officials [BLOG]

Boris Johnson had imposed a deadline of October 15 to reach a deal with the bloc, but it looks as if talks will continue beyond this time frame.

Michel Barnier, the EU’s chief Brexit negotiator, has indicated the talks will extend beyond the deadline.

He wrote on Twitter: “Strong EU unity confirmed ahead of European Council.

“The EU will continue to work for a fair deal in the coming days and weeks.”

The Frenchman was in Luxembourg to debrief European ministers on the latest in the Brexit talks.

EU sources said the deal-maker poured cold water on the possibility of a pact being reached before the European Council summit on Thursday.

Additional reporting by Monika Pallenberg

Source: Read Full Article