Cars are displayed outside a showroom in west London, Britain. The European car association Acea says there is probably major trouble ahead for the region's car makers. Luke MacGregor/Reuters
Cars are displayed outside a showroom in west London, Britain. The European car association Acea says there is probably major trouble ahead for the region's car makers. Luke MacGregor/Reuters

Car makers warn of potentially disastrous Brexit as EU and UK sign agreement



European car makers on Monday urged Brexit negotiators to pay "urgent attention" to the impact of the UK's divorce from the bloc on Europe's auto industry or risk disastrous consequences.

The warning came as Britain and the European Union on Monday reached a landmark deal on a transition phase that will last for nearly two years after the historic Brexit divorce next year, EU negotiator Michel Barnier said.

The fate of British auto production after Brexit has been a major concern for Prime Minister Theresa May who has pleaded for certain economic sectors to be allowed to keep seamless trade links to Europe.

But the European side has flatly refused any talk of the UK "cherry picking" benefits of EU membership after Brexit, without fulfilling the obligations of being a member.

Given the split, the European Automobile Manufacturers' Association (Acea) said that Britain's biggest manufacturing sector was at a serious risk of disruption with Brexit.

The association "is calling on the negotiators to pay urgent attention to sector-specific issues in order to avert potentially disastrous implications on the entire automotive supply chain", said Acea, which represents Europe's 15 major car and truck makers.

________________

Read more

Brexit boost for PM May as Toyota commits to building new Auris car in UK

'It's embarrassing': Brexit impact reports shows every scenario will hit UK economy

________________

The fate of the auto sector will be at the heart of talks on future relations between Britain and the EU, which are expected to launch in the coming weeks.

Britain is home to over 30 production facilities, producing both engines and vehicles, as well as other suppliers that are deeply integrated into European production chain.

In total, the sector employs some 814,000 people in Britain, Acea said.

The association warned that the continued health of Britain's car sector required "the UK remains fully aligned with all relevant EU legislation" in order to avoid major turmoil.

This meant that Britain must maintain full powers to approve new vehicle models for EU roads, part of the so-called type approval system that allows national authorities to greenlight vehicles for use Europe-wide.

Acea also warned that if Britain, the second biggest market in the bloc, withdrew from the EU's CO2 emission targets, the industry would struggle to stick to its anti-pollution commitments.

The association also warned that any hard Brexit scenario, which would see tariffs slapped on cars traded between the EU and Britain, "would be extremely burdensome" for car makers and consumers alike.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Results

6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m

Winner: Ziyadd, Richard Mullen (jockey), Jean de Roualle (trainer).

7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m

Winner: Barney Roy, William Buick, Charlie Appleby.

7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m

Winner: Secret Advisor, Tadhg O’Shea, Charlie Appleby.

8.15pm: Handicap (TB) $175,000 (D) 1,600m

Winner: Plata O Plomo, Carlos Lopez, Susanne Berneklint.

8.50pm: Handicap (TB) $135,000 (T) 1,600m

Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.

9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m

Winner: Gladiator King, Mickael Barzalona, Satish Seemar.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5