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No-deal Brexit and Covid threaten ‘double whammy’ for car industry

UK and European car makers 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 is “working hard” to reach an agreement.

The industry has already taken a £90bn hit this year due to 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.

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

The European Automobile Manufacturers Association

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