International
23:09 24 September 2020
Post by: WBJ

Goldman Sachs: No-deal Brexit threatens whole European automotive industry.

Goldman Sachs: No-deal Brexit  threatens whole European automotive industry.
Source: Pxfuel

A scenario in which a Brexit does not reach an agreement will create threats to the European automotive industry, as the economists of the investment bank Goldman Sachs indicate. 

As indicated in the bank's announcement on Thursday, these include: ‘duties on cars, higher sourcing costs for raw materials / components and, to a lesser extent directly, the potential for regulatory mismatches between the UK and the EU.’

Under a black scenario, GS analysts estimated that Groupe PSA's operating profit before tax (EBIT) in 2021 may be around 7 percent lower. Correspondingly, for Renault it would be 6 percent. In turn, in the case of BMW and Volkswagen the potential losses would be lower – approx. 4.5 percent.

"Under the worst possible assumption (return to WTO tariffs), the estimated losses may be much higher," they assessed.

The UK left the EU on January 31, 2020.. During the transitional period until the end of 2020, the parties are trying to negotiate an agreement on future relationships. 

(PAP) https://stooq.pl/n/?f=1376555&c=0&p=4


eu
brexit
automotive
goldman sachs

More News

lifestyle

LifeStyle
23 hours ago

'I dream of the role of a nun': Eliza Gwiazda

LifeStyle
1 day ago

‘I wanted to write harlequins since I was born’: Edyta Folwarska

LifeStyle
3 days ago

CoffeeTeria opens in Galeria Warmińska in Olsztyn

LifeStyle
3 days ago

Dorota Szelągowska: I have someone to talk to about private and intimate matters

Book of Lists

Book of Lists
6 months ago

25th jubilee edition of Book of Lists – project start

advertisement