UK Automotive Industry Can Not Accept No-Deal Brexit - Trade Association

"With exports, the majority to the EU, continuing to drive demand, it underscores the importance of a Brexit agreement to safeguard this trade; for our sector, ‘no deal’ is not an option," the head of SMMT Mike Hawes said as quoted in the society's press release on Thursday.

According to the association, UK car manufacturing declined by 12.9 percent in August compared to August of 2017 with 89,254 units produced. Production for home market fell by 38.8 percent, and for exports, the production fell by 3.8 percent.

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Since the beginning of 2018, 1.045 million cars have been produced in the United Kingdom, which is 5.2 percent less than in January-August of 2017.

In September, UK Prime Minister Theresa May said that no deal in the divorce between London and Brussels is highly likely, as the European Union’s rejection of the Chequers Brexit plan has led the sides into an "impasse." The prime minister noted that Brussels' options for the United Kingdom – either staying in the European Economic Area and the Customs Union or a basic free trade agreement with Northern Ireland remaining in the Customs Union – are completely unacceptable for London.

According to the Chequers plan, adopted by the UK cabinet in July, London and Brussels could create a free trade area for goods and maintain a "common rulebook" for all goods. The European Union, however, rejected the proposal as undermining the single market.