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Automakers have asked the UK government to cover the cost of a possible 10 percent tax on automobile imports that the EU may impose if the country is unable to reach a post-Brexit trade deal.
The UK is struggling to reach a deal with the EU, and the demand by BMW AG, Jaguar Land Rover Ltd., Toyota Motor Corp., and Nissan Motor Co. are seen as pressure to the UK to try harder.
European automotive industry associations calculated that their sector could lose approximately $130 billion without a free trade agreement.
In March 2019, Toyota warned that it might stop producing in the UK by around 2023 if the country exits the EU without an agreement.
An executive at Nissan's local branch also said that it will not be able to sustain its business without an FTA.
British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen agreed that there are significant gaps in their bid to sign an FTA.
The UK agreed on an FTA with Japan last month and is holding similar negotiations with the US, Australia, and New Zealand.
