We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
Fleets could see service and repair bills soar by 10% to an average of £777 a year if no deal is reached between the UK and European Union (EU) in the wake of Brexit, the Society of Motor Manufacturers and Traders (SMMT) has claimed.
The SMMT - which campaigned for the country to remain in the EU in the run-up to the vote last year - added that the UK's collective repair bill could increase by £2 billion a year if barriers to trade are imposed.
An SMMT-commissioned report from independent consultancy Frost & Sullivan suggested that if a 2.4?4.5% World Trade Organisation (WTO) tariff was imposed on imported car parts, the average car owner would end up spending an extra £21 a year on replacement parts, while custom delays and red tape could add an extra £49 onto a motorist's yearly bill.
According to the report, 80% of replacement car parts are imported, with almost three quarters coming from mainland Europe. It added that should the WTO tariffs be imposed, parts exported from the UK could cost the economy up to £3 billion in lost revenue each year, with a possible impact on future investments and jobs.
"This report shows just how vital the UK automotive aftermarket is to our economy and society, supporting hundreds of thousands of jobs and keeping vehicles safe - and the country moving," said Mike Hawes, SMMT chief executive. "Our car maintenance sector is one of Europe's most competitive, and motorists enjoy a great choice over where they have their cars serviced.
"However, if we don't secure a new trading relationship with the EU that is free of tariffs and customs checks, British consumers could face significant increases to their annual car repair bill due to new tariffs and other trade barriers."
He added: "Government must now prioritise an interim arrangement that maintains single market and customs union membership until the right trade deal with the EU is implemented."
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
