The effects of a no-deal Brexit could have a longer-term adverse effect on British car makers than the corona crisis. That says rating agency Moody’s pointing to Jaguar Land Rover and Aston Martin in particular. Their profitability could suffer.

Foreign car makers are hit according to whether they have exposure to the UK, for example because of factories there. Toyota, Nissan and Honda make cars in the UK. BMW, which owns the home British MINI and Rolls-Royce brands, is the European car manufacturer that could be hit hardest.

In the case of a no deal Brexit, the potential increase in domestic demand is not sufficient to ease the pressure on British car makers, Moody’s argues, due to import levies, trade barriers and a possible devaluation of the pound.

‘The economic situation for the United Kingdom is already uncertain and a no-deal Brexit would only strengthen this,’ says Tobias Wagner of the rating agency. “This creates more challenges for car manufacturers.”