Exports would be impossible. The supply chains would be snarled up. And trade restrictions would destroy the economics of the industry. We have been lectured endlessly on how our departure from the EU would destroy the British car industry. But hold on. It is now finding a new niche as an offshore manufacturing hub for the American market – and that is only possible because of Brexit.
The Japanese auto giant Toyota has today announced a major new investment in the UK. It’s a plant in Derbyshire will start making GR Corolla’s, a popular high performance model in America. The reason is simple. Right now, Japanese cars shipped across the Pacific face a 25 per cent tariff if they are sold in the United States. If the car was made anywhere in the EU it would face a 50 per cent tariff from July, at least on the current policy. By contrast, under the terms of the UK:s trade deal with the US, the tariffs will only be 10 per cent , at least up to the first 100,000 vehicles.
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