Honda UK shares the cost of leaving the EU Customs Union

The Guardian reported that the company, which manufactures 690 cars a day at its factory in Swindon, told MPs that every 15 minutes of custom delays would cost manufacturers up to £850,000 a year.

The firm, which exports a third of its cars to Europe, says that it is reliant on 350 trucks arriving from Europe each day, with just one hour’s worth of parts held on the production line.

Honda’s government affairs manager Patrick Keating said:

“I wouldn’t say that the just-in-time manufacturing model wouldn’t work, but it would certainly be very challenging.”

The report suggests that should Britain leave the EU without a trade deal, ministers plan to apply World Trade Organisation tariffs to European trade, which is currently 10% for finished cars and 4.5% for component parts. Rachel Reeves MP suggested that exporters may face a possible £300 tariff on imported components.

Honda UK is one of the first manufacturers to publicly share this sensitive commercial data, and did so at a Business Select Committee this week.

Read the original story on The Guardian’s website

If you would like to speak to a Manufacturing Advisor about how your business can prepare for leaving the EU Customs Unit, contact the Business Growth Hub’s Manufacturing team who will be happy to help. e: manufacturing@businessgrowthhub.com t: 0161 237 4196