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A cliff-edge Brexit could have 'semi-catastrophic effects' for Aston Martin

15 Novembre 2017

Aston Martin says it may be forced to halt production if the United Kingdom can not secure a Brexit deal with the EU.

Mark Wilson, Aston Martin's chief financial officer, told MPs this would incur "significant costs" for the company as it tried to gets its models certified for sale overseas.

He added the result could include "the semi-catastrophic effects of having to stop production because we only produce cars in the UK".

"We're a British company, we produce our cars exclusively in Britain and will continue to do so". 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.

Currently, all new cars in the United Kingdom must secure Vehicle Certification Agency (VCA) approval, which is valid in the EU.

"Without VCA type approval, it really is quite a stark picture for us", with the potential for a "semi-catastrophic" halt to manufacturing, Aston Martin Lagonda Ltd.

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Mr Hawes added that the United Kingdom motor industry's integration into European supply chains could make it harder to benefit from any free trade agreement with non-EU countries after Brexit.

Mike Hawes of the Society for Motor Manufacturers and Traders said certification was also important for European carmakers.

But under a "no deal" scenario, that validity would cease for new cars from March 2019 - casting doubt on the short-term future for the whole motor industry.

He said it would take Honda 18 months to get its systems ready for new customs procedures for exporting to Europe. All three called for clarity on EU transition deals, and Keating said that Honda would need to know details by March 2018 in order to get contingency plans in place to deal with the consequences of leaving the European Union.

He warned that should Britain walk away without a deal, the public could see price increases of around £1,500 per vehicle. This poses a problem for the United Kingdom, as free trade agreements require that 60% of goods must come from within the countries making the agreement.

"The figure is more like 25%, which is a long way from the 60% threshold you would need to qualify for a free trade agreement".

A cliff-edge Brexit could have 'semi-catastrophic effects' for Aston Martin