These charges are now likely to be avoided which the SMMT claimed will help protect jobs in the industry.
However, the SMMT warned the deal does not deliver on cumulation with trading partners such as Japan, South Korea and Turkey while still offering technical barriers to trade .
They said the arrangement will lead to “increased administration” and the possibility of friction at the border as the UK leaves the single market.
The SMMT warned the automotive industry was worth up to 10 percent of the country’s GDP with every £1 generated by the sector contributing £3 to the UK economy.
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Click the thumbs up >Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes has said he fears a “New Year nightmare” for UK car manufacturers if the UK Government and EU fail to reach a trade agreement.
Hawes said the threat of ‘no deal’ was palpable, with just nine days to go until the UK’s departure from the union, adding that the sector, now also reeling from the latest coronavirus resurgence, Tier 4 showroom lockdowns and disruption at critical UK ports, needs tariff-free trading “more than ever”.
His comments came as the SMMT reported a further 1.4% decline in new car production (to 106,243 vehicles) in UK car plants for November.
Some 106,250 cars were built in the UK last month - down just 1,500 on 2019
The SMMT said a marginal year-on-year decline in outputs was helped by a slow November 2019 for the automotive sector
In the 11 months to November, total car production is down almost a third
This represents a loss of 380,809 models at a cost of some £10.5bn to the sector
SMMT bosses said the industry faced a nightmare New Year with no Brexit deal
The number of cars made in the UK has fallen again, but the Society of Motor Manufacturers and Traders says the situation could worsen regardless of whether there is a Brexit trade deal.
Car production fell by 1.4% in November to 106,243, with more than four out of every five cars built being destined for export.
In the 11 months to November, total UK car production was down by 31% compared with the same period in 2019, representing a loss of 380,809 models at a cost of around £10.5bn to the sector, said the SMMT.
For only the second time since the early 1980s, the industry is expected to produce fewer than a million cars this year.
UK automotive manufacturing down across the board amid calls for Brexit resolution eveningexpress.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from eveningexpress.co.uk Daily Mail and Mail on Sunday newspapers.