Brexit: Car maker Bentley warns no-deal outcome would damage profits and could lead to plant shutdown

The company said in a worst-case scenario, the UK's exit from the EU would hamper its ability to invest

Car maker Bentley has warned that a no-deal Brexit would be “damaging” to profits and could lead to its UK plant closing down for several additional days.

Chief executive Adrian Hallmark said the firm was already preparing by building up some stocks and switching from the port of Dover to Immingham to bring in certain parts with more contingencies to be enacted from December if needed.

Like the rest of the sector, the Volkswagen-owned brand, which builds roughly 11,000 vehicles at a northern English plant in Crewe, is worried about duties and 10 percent tariffs under World Trade Organisation terms.

“Best case, it’s an annoying impact on our annual profitability,” Mr Hallmark told Reuters. “Worst case, it’s quite damaging on our annual profitability so a full no deal Brexit would hurt us as a company, it would limit ability to invest.”

London and Brussels hope to strike a Brexit agreement next month but Mr Hallmark said if there was no deal by the end of the year, the automaker would have to consider stockpiling more and closing its plant for a few extra days to handle any disruption.

“We may work for four days, or we may have a longer Christmas break and a longer Easter break if there is no deal so that we can smooth the period between now and the middle of next year,” he said.

Britain’s overwhelmingly foreign-owned automotive industry employs more than 850,000 people and has been vocal about the benefits of keeping free and unfettered trade as thousands of cars, engines and parts move to and from the continent daily.

The country’s largest carmaker Jaguar Land Rover has warned that the wrong Brexit deal could cost it £1.2bn per year while Mini has moved its annual shutdown to April, just after Britain leaves the bloc.

Aston Martin is even considering flying in car components if there are snarl-ups on motorways to and from Dover, prompting many, including Bentley, to consider other ports to help avoid delays.

Prime Minister Theresa May has repeatedly said she will get a good deal for the industry with her Chequers plan, which has faced stiff opposition from many in her party, promising a common rulebook for goods with the EU to avoid disruption.

Reuters