(Reuters) – Failure to strike a Brexit trade deal with the EU would be “extremely damaging” and cut profits by up to a quarter at carmaker Bentley, its boss told Reuters, as the government urges firms to plan for potential disruption.
Britain said on Monday there was still no basis for talks with Brussels to resume, just over two months before free and unfettered trade is due to end, leading to possible tariffs, customs checks and long delays for imports and exports.
The Volkswagen-owned luxury brand has spent millions to prepare, including stockpiling, switching ports and a provisional air freight contract, but warned on failure to find an agreement.
“It would be extremely damaging,” Chief Executive Adrian Hallmark told Reuters on Tuesday.
“If you took the duties on components, 45% of the bits we buy in, and the 10% tariff on cars, worst-case scenario, it would take out a significant percentage of our profits,” he said. “(It) would probably cost us 20% to 25%.”
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