Automobile manufacturers welcome Brexit trade agreement

EU and UK automobile manufacturers welcome Brexit trade agreement with European Union and UK.

The European Automobile Manufacturers Association (ACEA) has welcomed the Brexit deal and said the deal would bring relief to European automakers.

Eric-Mark Huitema, Director General of the ACEA, said that the distribution chains of the European automotive industry are spread across Europe and the United Kingdom, and that the decision to enter into a trade agreement will strengthen the automobile sector.

At the same time, the ACEA says it will not be able to fully assess the implications of the agreement until all technical details have been made public. Only at this point will it become clear to what extent the agreement will be reflected in European automakers and the supply chain.

“The impact of a no-deal Brexit on the EU auto industry would have been simply devastating, so we are first and foremost extremely relieved that an agreement was reached before the transition period expired,” Huitema said.

At the same time, the Society of Motor Manufacturers and Traders (SMMT) welcomed the new trade agreement.

SMMT Chief Executive Mike Howes said that they are waiting for the details of the deal to ensure that the deal works for all automotive goods and technologies.

He also said that the government would continue to work with the European Union for a stable trade relationship between the two countries.

At the same time, there are challenges ahead as part of Brexit. Brexit procedures starting from January 1 are expected to significantly affect the movement of goods. Failure to move the goods on time will also cause delays in the manufacture of vehicles.

The trade between the EU and the UK is estimated at three million vehicles worth 54 billion annually. In addition, 14 billion worth of automotive parts for vehicles are traded between the European Union and the United Kingdom.