Car makers and sellers plead with government for clarity after May’s Brexit deal defeat

Car makers and dealers have called for clarity on how Britain will leave the EU after MPs resoundingly dismissed Theresa May’s Brexit deal in parliament last night.

The 230-vote defeat for May’s deal has cranked up the risk of a no deal scenario according to the EU’s chief negotiator Michel Barnier, a situation believed to be disastrous for Britain’s car industry.

Read more: UK car sales fall for the second year in a row as Brexit uncertainty dampens demand

Britain’s car makers and sellers have already struggled in the face of uncertainty over the terms of Brexit, with UK car sales falling 6.8 per cent year on year in 2018, the second straight annual drop.

The influential Society of Motor Manufacturers and Traders (SMMT) led the calls to protect against such an exit after the result, having backed the PM’s deal for weeks.

Mike Hawes, SMMT chief executive, said: “The vote against the Brexit deal on the table brings us closer to the ‘no deal’ cliff edge that would be catastrophic for the automotive industry.

“All sides in parliament must work together to find a way forward and put the necessary mechanisms in place to prevent this happening and explore alternatives that protect our future.

“Leaving the EU, our biggest and most important trading partner, without a deal and without a transition period to cushion the blow would put this sector and jobs at immediate risk. ‘No deal’ must be avoided at all costs. Business needs certainty so we now need politicians to do everything to prevent irreversible damage to this vital sector.”

Meanwhile the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, also called for protection from no deal.

NFDA director Sue Robinson said: “The UK is the second largest car market in Europe with £35.3 billion worth of cars imported to the UK from Europe and the retail automotive sector employs 555,000 people directly in the UK.

“Following the result of the vote last night, NFDA urges the Government to take all necessary steps to ensure that our industry is protected. Businesses and consumers need clarity about the Government’s future plans.”

Read more: Brexit: What happens if Theresa May loses the vote on her deal?

Jaguar Land Rover, which employs 400,000 people in the UK, confirmed it would cut 4,500 jobs as it switches focus to electric vehicles last week.

Meanwhile, European car sales also fell for the fourth consecutive month in December, down eight per cent as a result of more stringent emissions testing and falling demand in China.