The Government’s lack of clearness over Brexit is “working directly against the interests of the UK automotive sector,” putting the £20.2 billion industry as well as as much as 856,000 tasks at an unnecessary risk, the SMMT – UK’s automotive market body – has warned.
If the UK wishes to preserve its setting as a essential producing country, the government should accomplish a deal, that “as a minimum, preserves customs union membership as well as delivers single market benefits,” the society of motor producers as well as Traders has stated today.
Advertisement – short article continues below
The many recent figures show that the automotive industry contributes £20.2 billion to the UK economy, with employment both directly in the industry as well as in supporting fields reaching 856,000.
However, the SMMT’s figures likewise expose a stable decline in car producing – with vehicle as well as van output down three as well as 16.7 per cent respectively – while producers in the UK, including Jaguar Land Rover, Nissan as well as Vauxhall have just recently revealed task as well as dealership cuts. The uncertainty connected with the Government’s setting on Brexit has likewise implied the market has just £347.3 million in new investment earmarked for new designs – practically half the sum recorded in the exact same period last year.
• BMW task force prepares for worst-case situation Brexit
The SMMT warns that leaving the single market as well as customs union would put an end to the totally free motion of products over the UK’s EU borders. much more than 1,100 lorries from the EU cross into the UK daily bringing car parts as well as producing elements to UK plants. These factories frequently work under a ‘just in time’ shipment system that would be challenging to preserve were customs as well as border controls tightened.
Speaking at the SMMT’s annual summit, SMMT’s chief executive, Mike Hawes warned: “There is growing aggravation in worldwide boardrooms at the sluggish speed of negotiations. The present position, with conflicting messages as well as red lines goes directly against the interests of the UK automotive industry which has thrived on single market as well as customs union membership.
“There is no Brexit dividend for our industry, especially in what is an progressively hostile as well as protectionist worldwide trading environment. Our message to government is that up until it can demonstrate precisely exactly how a new design for customs as well as trade with the EU can replicate the benefits we currently enjoy, don’t modification it.”
What type of a Brexit offer ought to the UK government negotiate? tell us in the comments below…