SMMT calls on MPs to back Theresa May as it issues fresh warnings against a no-deal Brexit

Automotive trade body the Society of Motor Manufacturers and Traders (SMMT) has issued a plea to MPs to back Theresa May’s deal as it issues fresh warnings against the impact of a “no-deal” Brexit.

A survey unveiled at its 102nd annual dinner last night revealed that three quarters of carmakers fear a no-deal Brexit will threaten their long-term viability.

Fewer than 9 per cent could seen any positives in leaving the EU without a deal, while almost a third of respondents said they had postponed or cancelled UK investment decisions because of Brexit.

The survey comes as Theresa May struggles to win backing for her deal ahead of a vote by MPs before Christmas, with the Democratic Unionist Party that props up her minority government vowing to vote it down.

SMMT chief executive Mike Hawes said: “Leaving without a deal would be catastrophic – plants will close; jobs will be lost. Leaving is not what we wanted, but we recognise that the withdrawal agreement has been hard-fought and, crucially, delivers a transition period which steps us back from the cliff-edge. We need a deal now, and we need an ambitious deal for the future that guarantees frictionless trade with our most important market – nothing else will do, and we urge all parties to remember what’s at stake.”

Meanwhile, the Economist Intelligence Unit (EIU) has cut its growth forecast for new-car sales to 2.7 per cent in 2019, down from 5.3 per cent in April. The EIU report said the US-China trade war was the main threat to the industry.