Brexit No-Deal Could Stop Aston Martin Production

Postado Novembro 15, 2017

Aston Martin finance chief Mark Wilson said a Brexit no deal could force the company to stop manufacturing because British cars would lose the certification they need to be sold in the EU.

Mr Wilson said he "hoped it would not come to that", adding he was "encouraged" by talk of a transitional deal.

"We produce our cars exclusively in Britain and will continue to do". Companies are not allowed to hold simultaneous type approval from two authorities, therefore if United Kingdom firms were forced to apply for new vehicle certification that would be valid in Europe, they would have to stop production while doing so.

Every auto manufacturer in the United Kingdom must be approved by the Vehicle Certification Agency, which enables sales throughout the Single Market. "During that transition we would have to look to see how Aston Martin could recertify under a non-VCA approval structure".

Without a UK-EU deal, that validity would cease for new cars from March 2019.

Mr Wilson was giving evidence to the Business Select Committee along with Mike Hawes, Society for Motor Manufacturers and Traders chief executive, and Patrick Keating, Honda Motor Europe's government affairs manager.

He said it would take Honda 18 months to get its systems ready for new customs procedures for exporting to Europe. Noting that Honda imported two million components from Europe each day, he estimated a 15-minute delay at customs would cost the firm £850,000 a year, because the company carries just one hour of stock on its shelves.

Aston Martin Warns It Could Have To Stop Making Cars If Brexit Talks Fail

All three executives called for clarity on a transition deal with the EU.

He added: "We're thinking about increasing the amount of warehousing and the amount of stock we would have to hold if friction entered the border".

Currently VCA approved cars are able to be sold across the European Union thanks to the UK's membership.

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 auto companies "sitting on their hands", said Mr Hawes.

"How much of that 44% actually comes from the United Kingdom, bearing in mind those suppliers are buying in supply chains from all over the world?"

They warned that vehicle companies may also struggle to benefit from new free trade agreements with other nations that insists on 60 per cent of a product being made up of "original" or home-made content.