As the UK government considers its position in the wake of the EU national referendum result to leave the EU, the UK’s auto industry trade association has appealed for continued unrestricted access to the European single market for UK automotive manufacturers.
In a statement, the SMMT said access to the single market and EU-negotiated international trade deals, the ability to recruit talent internationally and influence new standards have all helped make the UK automotive industry one of the world’s most competitive. This has helped attract billions of pounds in investment in recent years, delivering record productivity, job creation and growth, the SMMT said.
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Following the referendum result in the UK, the next stage is for the UK government to trigger ‘Article 50’ of the EU’s Lisbon Treaty to start a two-year negotiation of the UK’s departure terms. The UK government is still to determine its position for the negotiations. Some UK politicians are arguing for continued access to the single market and free trade between the UK and EU. However, that would likely come with a commitment for free movement of people and paying into the EU Budget, as is the case with Norway’s agreement with the EU. That could prove contentious for some who campaigned for the UK to leave the EU.
During the referendum campaign, firms with UK automotive manufacturing generally backed the UK staying in the EU and the SMMT took a pro-Remain stance after a survey of its members emphatically said they supported continued EU membership.
“This success [of UK automotive] has been due to unrestricted access to the single market, input to EU legislation to safeguard the interests of UK Automotive, and the ability to recruit talent from abroad,” said SMMT chief Mike Hawes. “Our growth depends on certainty and continued open and reciprocal access to the 100-plus markets with which the UK automotive industry so successfully trades. This is not just finished cars but components, technologies and the wider automotive value chain. Any risks and uncertainty to these fundamental benefits need to be addressed head on by UK government.”
The SMMT said that the UK’s automotive sector reported a record GBP71.6bn turnover last year – up 7.3% on 2014. Sector jobs increased by 17,000, with 814,000 people now employed in the UK automotive sector. Vehicle production was up 5.2% to 1.7m units in 2015.
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