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