UK government offers Brexit guarantees

UK car manufacturing won't be hindred by the Brexit process once it is finally completed, according to business minister Nadhim Zahawi.

According to Automotive News Europe, Zahawi said he is 'confident' that a deal will be struck with the European Union that will make sure that there will be no tariffs on imported car parts, ensuring that supply chains and production lines will remain functioning as normal.

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"Those who are fighting the old battles of Leave/Remain still have this binary view of the world of 'oh my goodness, if we can't get a deal there is going to be a cliff-edge' – I don't believe that is true," Zahawi said. "The heads of terms agreed by the UK and the EU say there are no tariffs, no quotas, and that is what we are going to strive for. And that, I believe, we will be able to deliver."

A no deal Brexit has been seen as a catastrophic possibility for the British automotive industry. As much as 80 percent of vehicles built in Britain are exported, with more than half of those (54 percent) sold in EU countries. What's more, nearly 80 percent of components used in cars built in Britain are imported.

EU leaders however have said that the Prime Minister's timeline for Britain's withdrawal from the Union would leave no time to broker a full agreement.

Last year the UK's automotive industry faced a production slump and numerous factory shutdowns as Brexit failed to happen on three separate occasions.