Drivers could face ‘higher tariffs’ on cars built with EU parts in just three weeks
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Drivers may have to pay “higher tariffs” on vehicles which do not have an allocated percentage of parts from the country of manufacturer which could force many to pay more. Daniel Briggs, spokesperson for Motorfinity has warned carmakers may be forced to buy from UK suppliers in a desperate attempt to avoid higher tariffs.
He warns this could increase the manufacturing timetable on models and slow down deliveries to customers.
Speaking exclusively to Express.co.uk, Mr Briggs said: “The devil will be in the detail of the Brexit deal too, [such as] components.
“Brake fixings, bumpers, condensers and starters can be made all across the world and require shipping in order to be fitted.
“Under the ‘rules of origin’ regulations, there may be a percentage cap on the number of parts used in each vehicle.
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“Higher tariffs may be charged on cars that do not have the allotted percentage of parts from the country of manufacture.
“This would force UK carmakers to buy from domestic suppliers and, on average, just 41 per cent of parts used in a UK-built car are actually produced here.
“Parts can be hard to come by due to the types of materials required, and so the timeline of manufacturing a car could take even longer.”
Mr Briggs warned a no-deal could see “consumers paying more” as 10.6 percent tariffs could be applied on many EU imported vehicles.
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A no-deal exit looks even more likely after negotiations between Boris Johnson and European Commissioner Ursula von der Leyen have failed to find a resolution.
The Prime Minister revealed yesterday that the UK was heading towards an Australian style arrangement if a free trade deal could not be negotiated.
This would require many goods to be traded under WTO rules which would apply tariffs on many items.
Mr Briggs warned this will apply to many of the UK’s most popular vehicles including BMW, Audi, Fiat, Renault and Vauxhall.
He told Express.co.uk: “I have to wonder, if we don’t get the deal we want, will such high demand for cars still be there?
“Will the more expensive, high-end brands become unaffordable to those who can afford them today?
“Will shopping habits change? For example, will people swap buying new for buying second-hand?
“Or perhaps will the more basic models that weren’t as popular historically, become more popular?”
However, Mr Briggs said there were “some positive movements” within the car industry whether there is or is not a deal.
He said many brands have agreed to price protect orders which are placed before 31 December 2020 and delivered to customers before 31 March 2021.
This means road users will not pay any extra for vehicles purchased within the next three weeks which could be a major incentive for many.
Vehicles built and manufactured within the UK will not be subjected to extra tariffs and are unlikely to see any price rises.
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