Aston Martin: no Brexit deal could be 'semi-catastrophic' for firm

Aston Martin DB11

Aston Martin DB11

Iconic British carmaker Aston Martin could be forced to stop production should the United Kingdom fail to get a Brexit deal.

Giving evidence to the Business Select Committee, Mr Wilson said that Aston Martin was planning to continue producing in the United Kingdom after Brexit but needed more clarity about a possible transitional deal.

Honda government affairs manager Patrick Keating urged Ministers to give the industry greater clarity on any interim or transition "bridging" deal between Brexit in 2019 and a new trading arrangement.

"We produce our cars exclusively in Britain and will continue to do".

He said: "Rectifying to the new type-approval - be that federal, USA or Chinese type approval - or even trying to retroactively apply to use the European type approval would mean stopping our production".

The Vehicle Certification Agency (VCA) provides British cars with certifications for vehicles, their systems and components.

"Without VCA type approval, it really is quite a stark picture for us", with the potential for a "semi-catastrophic" halt to manufacturing, Aston Martin Lagonda Ltd.

80% of United Kingdom vehicle manufacturing output is exported, according to the Financial Times. About seven in 10 vehicles sold in the United Kingdom come from the EU.

If Britain and the European Union fails to agree a new trade deal then tariffs could be imposed on imports of the components needed to build cars in the United Kingdom and on British built cars being sold in the EU.

Every 15 minutes of delay at customs would cost the company £850,000 a year, although Mr Keating admitted the figure was not "scientific". Those decisions are happening every day, and we are waiting to see what will be the outcome and therefore clarity is absolutely at a premium for us'.

Free trade agreements require that about 60% of goods must originate from within the countries making the agreement.

Mike Hawes, the chief executive of the Society for Motor Manufacturers and Traders, also warned the cost per vehicle of having no Brexit deal could be as much as £1,800.

Investment had been averaging £2.5bn a year but fell to £1.6bn in 2016 and is headed to be less than £1bn this year, with anecdotal evidence of vehicle companies "sitting on their hands", said Mr Hawes.

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