What does leaving the EU mean to the automotive industry?

posted on Jun 24 2016 by Adam Lloyd

What does leaving the EU mean to the automotive industry?

The automotive industry supports around 800,000 jobs in the UK and contributes over £15.5bn annually to UK economy. Astonishingly, 57.5% of the 80% of vehicles exported, are destined for the EU.

The Society of Motor Manufacturers and Traders (SMMT) found 77% of motor industry businesses are opposed to Brexit and BMW have even warned that their staff in the UK may result in losing their jobs.

The SMMT went on to say how the UK automotive industry will no longer be able to benefit from "unrestricted access to the world's largest single market, the negotiating strength of the EU to secure international trade deals, the ability to shape technical regulations and free movement of labour."

The choice to leave the EU, may mean the imposition of additional Customs controls at ports. Unfortunately for motorists, this is likely to result in delays on both sides of the Chanel coinciding with the fact that motorists stay will become limited, with potential implementation of visa's restricting motorists to possibly 90 days maximum.

It doesn’t seem to be just the delays of added customs which will effect the UK motoring industry, it seems purchasing fuel will become more expensive now Britain has exited the EU. The AA predicted "worst case scenario" and expect prices of petrol to rapidly rise by 18.7p per litre.

The pound is predicted to devalue and undecided UK/EU trade tariffs could see the increase of cost for new cars, especially cars imported from Europe.

Brexit could see a return back to the 90's with the unofficial "grey import" of cars which led to the "Great British Car Rip-Off". According to Which?, Briton's paid £4,000 more for some popular cars than buyers in the EU.