What would a no-deal Brexit mean for cars?

The Economist is running a series of articles on the potential impact of a no-deal Brexit on everything from trade to the economy, immigration to universities, the island of Ireland to retailing. This piece looks at the automotive industry.

Carmakers based in Britain compete fiercely to sell their products to motorists. But competition gives way to total agreement when it comes to Brexit. Any deal that changes arrangements at Britain’s borders—across which millions of parts and completed cars flow in both directions every year—or introduces tariffs on an industry that customarily operates on slender margins, would be damaging. Worst of all is the prospect of a no-deal Brexit. That would bring immediate uncertainty to the operation of supply chains and impose World Trade Organisation (WTO) rules, slapping large tariffs on cars and parts.