Hard Brexit ‘could increase cost of making a car in UK by £2,400’

Some carmakers would be forced to move production overseas if Britain falls back on WTO rules, report finds

The cost of assembling a car in Britain could increase by £2,370 in the event of a “hard Brexit”, forcing some manufacturers to look at moving production out of the country, a report has found.

The increase in costs – equivalent to more than 10% per vehicle – would hit the average UK-built car if Britain falls back on World Trade Organisation rules after leaving the European Union. Even if the UK agrees a tariff of 5% with the EU on importing and exporting cars and 2.5% on components then £1,202 will be added to the cost of production.

Related: Toyota invests £240m in Derbyshire plant – but warns over Brexit tariffs

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