Auto industry could be hardest hit after Brexit
Experts have warned that the auto industry may be one of the hardest hit industries following Brexit, due to the sector’s reliance on exports and overseas talent.
Damage “beyond repair”
In January, the Society of Motor Manufacturers and Traders (SMMT) joined the debate and warned that a failure to establish proper trade deals after Brexit could damage the car industry “beyond repair”.The number of cars built in the UK hit a 17-year high last year and more cars are being exported from Britain than ever before. According to figures released by the SMMT, 1.7 million cars rolled off UK production lines last year, an increase of 8.5 per cent on the previous year and the highest output since 1999.More than one in two cars produced in the UK in 2016 was exported to Europe, thanks to a 7.5 per cent increase in demand from the continent.“The tremendous growth in UK production is testament to the global competitiveness of the UK automotive sector,” said Mike Hawes, chief executive of the SMMT. “Significant investment in new plants and products over the past few years has driven this growth, not a post-Brexit bounce,” he said.Related news:
- UK car sales hit record high despite political uncertainty
- Toyota investment 'vote of confidence' in UK car industry
- New advice targets root of STEM skill shortages
Finding the right deal
Mr Hawes added that the SMMT wants “trade deals but they must be the right deals, not rushed deals. Failure to do so could damage UK automotive manufacturing beyond repair.”The SMMT also said that ten new car models began production in the UK in 2016, nine of them from premium brands, meaning that he UK is now the second biggest producer of premium cars after Germany and the third biggest car producer in Europe.The UK’s biggest export destination for cars after Europe was the US, accounting for 14.5 per cent of all UK car exports.Nissan boss Carlos Ghosn has also admitted that his company’s UK investments may have to be “re-evaluated” depending on the outcome of Brexit.For related news and features, visit our Enterprise section.Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.