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The Society of Motor Manufacturers and Traders (SMMT) has launched its Brexit Readiness Programme in a bid to safeguard the UK’s automotive supply chain in the event of a no-deal Brexit. Anna Tobin reports
The SMMT is urging the Government to agree on orderly withdrawal terms on the UK’s exit from the EU and a transition period, but it has launched its Brexit Readiness Programme as this is not guaranteed. The programme is designed to highlight how the motor industry will be impacted by no-deal and is targeted at the SMEs who make up the vast majority of the UK’s automotive supply chain companies.
The UK automotive supply chain provides 82,000 jobs and contributes £4.9 billion to the UK economy and it is reliant on frictionless trade. The SMMT scheme will reveal how calculations and notifications relating to the value and origin of goods should be made; how potential delays to the movement of components into and out of the UK could impact; the challenges of new customs arrangements; and explain tariff issues. PwC, Squire Patton Boggs, Deloitte, Gowling WLG and Grant Thornton are providing their legal and accountancy services as part of the SMMT’s consultancy programme.
“A strong local supply chain is the backbone of any manufacturing sector, and ours has thrived thanks to massive reshoring efforts and the ability to trade freely and frictionlessly with the EU,” explains SMMT CEO Mike Hawes. “A ‘no-deal’ Brexit could have devastating consequences. With the clock ticking on negotiations, businesses must plan for all eventualities, including the worst. Our new support package seeks to mitigate the threat of ‘no-deal’ by helping businesses navigate the complex trade realities of a post-Brexit landscape.”