CAR makers in Britain, including Honda which manufactures in Swindon, are not ready for a 'no-deal Brexit.'

The boss of the UK industry body, the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes said he could not see any benefits to the industry and its workers from leaving the EU, and warned that leaving without a deal would be very damaging to the sector.

As Brexit talks continue with little apparent prospect of a solution, Mr Hawes spoke candidly about the effect and cost of a no-deal of the UK car market: “No one would profess to being Brexit-ready because there are too many variables in there,” he said. “We need a deal. If we have no deal, there is no transition, there is no implementation period, that would kick in less than eight months away. You can operate on WTO [World Trade Organization] trade rules but it would be at a significant extra cost and burden than we currently enjoy.”

When asked if there were any benefits of Brexit for the 4000 Honda staff in Swindon, and further 182,000 car workers across Britain, Mr Hawes, said: “Not that I can see.”

He added: “A lack of clarity on Brexit had left the industry struggling to prepare for the departure date in March 2019.”

“You survive on the basis that you’re competitive. Once you cease to be competitive – you generally don’t shut overnight – but your ability to attract that next round of investment is that much tougher. Gradually, it’s a death by a thousand cuts.”

Mr Hawes said he hoped negotiators form the UK and EU could come up with a solution to what seems like an impasse. He said: “The UK government’s latest Brexit proposals are a step in the right direction to safeguard future growth and consumer choice.We now look to negotiators on both sides to recognise the needs of the whole European automotive industry, which, combined, employs more than 12 million people.

" Any disruption risks undermining one of our most valuable economic assets.”

Last year 32 percent of cars made by Honda in the UK were exported to EU countries.

Bosses at Honda have been consistent in their position that for the company and Swindon plant to continue to thrive, a deal needs to be founds, and preferably one which keeps the UK in the Customs Union - which would allow free movement of goods across borders without time-consuming and costly customs checks.

A spokesman said: “To provide certainty and clarity to business – as we have said for quite some time now – is for the UK to stay within a Customs Union. Honda remains committed to our operations in the UK and Europe, and are working closely with the government to ensure the best conditions for our business following the UK’s exit from the European Union”.

Neighbouring car manufacturer, Jaguar Land Rover, which has factories in the West Midlands and on Merseyside said earlier this year a no-deal Brexit could result in them leaving the UK.

Honda has spent £ £2.2bn over the last thirty years in it's Stratton factory but production of the CRV model stopped there in May.

A spokesman for the company said it does not comment on the future of potential models