THE owner of Scotland’s biggest Ford retailer has warned the car industry is facing “Armageddon” if Brexit leads to onerous import tariffs and trading constraints with the European Union (EU).

Brian Gilda, founder and chairman of Peoples, condemned the UK Government’s handling of the Brexit talks, declaring that if politicians were involved in running businesses they would be “out clubbing rabbits for their tea” because they would be unable to make any money. And he issued a stark warning about the impact the failure to deliver a business-friendly Brexit would have, stating that “unacceptable” tariffs would put thousands of jobs at risk.

Speaking as Peoples reported a dip in pre-tax profits to £5.3 million for the year ended July 31, down from £6.2m, Mr Gilda said: “The effects [of Brexit] actually started in the prior financial year up to 2017, and they have become more accelerated in 2018. The thing that probably a lot of people don’t realise is that the motor industry is a huge industry, but it is usually the manufacturers that who get all the juice (sic).

“In reality, it’s about 650,000, 700,000 who work in the service industry, in small garages, selling parts and all that sort of stuff [who will be affected]. If tariffs come in that has the potential to do some serious damage.”

Mr Gilda, who owns three dealerships in Scotland and three in the Liverpool area, added: “Unless we see something concrete on Brexit, it is going to have a very calamitous knock-on effect.”

Mr Gilda’s firm reported a slight decrease in turnover last year, with revenue dipping to £274.4 million from the record £276.6m it delivered the year before.

While its profits for 2017 were the joint third-highest Peoples has made in its history, Mr Gilda fears Brexit could put even more pressure on thin margins.

Observing that trading conditions were “fierce”, with volumes diminishing in parts of the market, he said: “If tariffs come in then that margin will get squeezed because the consumer won’t necessarily want to pay any extra money for it. Either the manufacturer will have to weigh in with more support money, or the dealer will have to take less.

“The industry is not going to collapse, but it is going to have a big effect.”

Mr Gilda said that, on a personal level, he does not wish to see the UK leave the EU, observing that in the areas Peoples operates, the electorate did not vote in favour of Brexit. He was scathing about the Government’s handling of the divorce talks.

Mr Gilda said: “Unfortunately, we live in a society where we get the politicians that we deserve. And the ones we have got just now, frankly, some of them don’t add up to a run of beans.

“If some of them came into our environment, or any business environment, and ran it the way they are running the country, they’d be out clubbing rabbits for their tea, because they wouldn’t make any money at all.”

Mr Gilda added: “We have got politicians in my view who are not doing things for the best interest of the country or jobs and employment. They’re doing it because of an almost catatonic state of political requirement to go and have this separation from Europe.

“You then have, moving on from that, the SNP, who want to separate from the UK.”

Mr Gilda, whose company employs around 400 staff, declared himself satisfied with Peoples performance last year despite the challenging conditions. The company’s best-selling cars remain the Ford Fiesta and Ford Focus, with the Ford Transit its top-selling commercial vehicle.

Mr Gilda said: “Peoples has been in business for 36 years. We’re a privately-run company and we pride ourselves on the service provided to our customers by our loyal, long-serving and hard-working staff.”