UK car production could be cut by more than a third if the UK withdraws from the EU without an “ambitious” trade deal, an industry body has warned.
Analysis commissioned by the Society of Motor Manufacturers and Traders (SMMT) predicts that falling back on World Trade Organisation (WTO) rules would add £3.2bn a year to car making costs.
Car prices would rise and annual output could fall to as little as one million by 2024, the data by AutoAnalysis said.
The UK made 1.52 million cars in 2018.
SMMT chief executive Mike Hawes said falling back on WTO rules for imported components and car exports would result in a level of cost increases that the industry would not be able to absorb without prices rises and production cuts.