Increased tariffs are “existential threat” to UK car industry, warns academic

An economics academic has warned there is an “existential threat to the UK car industry”.

David Bailey, professor of business economics at the Birmingham Business School, told the BBC Today programme that the stricter rules and increased tariffs set to arrive into force next year would assign British manufacturers at a competitive disadvantage: “I mediate there is a kind of existential threat to the UK car industry.

“The rules in the Brexit agreement don’t encourage the UK car industry either. If they can’t meet those rules, they’ll face a 10% tariff on cars made in the UK and exported to the EU and vice versa. That will assign the UK at a competitive disadvantage.”

He added: “Car makers believe been saying for some time, they can’t meet those rules as they tighten up, and they’re going to potentially be facing tariffs.”