Brexit No-Deal Could Stop Aston Martin Production

Brexit No-Deal Could Stop Aston Martin Production

Brexit No-Deal Could Stop Aston Martin Production

Luxury vehicle maker Aston Martin warned a committee of MPs they may have to temporarily stop production if the United Kingdom leaves the European Union without a deal.

Giving evidence to the Business Select Committee, Mr Wilson said that Aston Martin was planning to continue producing in the United Kingdom after Brexit but needed more clarity about a possible transitional deal.

Mark Wilson, its finance chief, warned that if some of the finer points of the current arrangements were not replicated it could be "catastrophic" for the British vehicle industry.

He added: "We're a British company".

"Otherwise, there are significant costs involved in gaining another type approval, but also the semi-catastrophic effect of having to stop production, because we only produce cars in the United Kingdom".

Vehicle makers must stop production temporarily when applying for new certification, since they can not hold approval from more than one authority simultaneously.

The Vehicle Certification Agency (VCA) provides British cars with certifications for vehicles, their systems and components. Without VCA type approval, it really is a stark picture for us.

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

All three executives called for clarity on a transition deal with the EU. Keating told the MPs that Honda would take 18 months to get its systems ready for new customs procedures for exporting to Europe.

He added: "We're thinking about increasing the amount of warehousing and the amount of stock we would have to hold if friction entered the border". "Those decisions are happening every day, each day, and we are waiting to see what will be the outcome and therefore clarity is absolutely at a premium for us".

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.

Free trade agreements require that about 60% of goods must originate from within the countries making the agreement.

They warned that vehicle companies may also struggle to benefit from new free trade agreements with other nations that insists on 60 per cent of a product being made up of "original" or home-made content.