The European Automobile Manufacturers Association (ACEA) and the European Association of Automotive Suppliers (CLEPA), sounded the alarm on Wednesday 17 October ahead of the summit on Brexit (see related article), given the risk that a “no deal” withdrawal would have for the motor industry.
ACEA Secretary General Erik Jonnaert and CLEPA Secretary General Sigrid de Vries both reiterated at a press conference the extent to which the automotive industry was integrated at European level, saying it was based on its value chain and worked with a just-in-time system for parts.
Thus, if only to supply production centres in the United Kingdom, 1,100 HGVs cross the Channel every day, Jonnaert explained. De Vries said each vehicle was, on average, composed of 30,000 elements and that every element was made up of at least 30 components, produced a little everywhere on the European territory, as well as in the United Kingdom.
Jonnaert and de Vries believe there must be clarification regarding the future exit deal and future relations between the Union and the United Kingdom as soon as possible. A “hard Brexit” would mean a swing to the World Trade Organisation (WTO) rules and would entail the establishment of 10% customs duties for all cars marketed between the EU and the UK, Jonnaert explained. He went on to point out that “the profit margins of automobile makers are far lower than 10%”.
Whatever deal is reached, Brexit will affect SMEs in particular, those without enough personnel to face the new and heavy administrative procedures and manage customs duties. According to Sigrid de Vries, regulatory barriers alone could increase production costs by up to 15%. Such costs will of course be passed on to consumers (still more for the British whose purchasing power is falling due to the pound’s devaluation compared to the euro).
Those taking the floor raised the question of type approval for components and new vehicle models already having a type approval certificate to ensure they may be sold on British and European markets.
One speaker expressed scepticism regarding a differentiated customs solution providing for exemptions depending on the product. He explained, for example, that a car seat requires the importation of textiles and needles which can be used in many ways. (Original version in French by Pascal Hansens)