The SMMT has published a report that has strongly endorsed the UK’s continued membership of the EU which it says is fundamental to investment, growth and jobs in the UK’s automotive sector.
The SMMT commissioned a report carried out by consulting firm KPMG examining key aspects of the UK’s membership of the EU and how it affects the UK automotive sector, particularly in terms of investment, growth and job creation.
Go deeper with GlobalData
With just two years to go before a General Election in the UK, the issue of continued British membership for the EU and on what terms, is already the subject of political debate and has been proposed for a referendum.
However, some business leaders have been speaking out in defence of the business case for continued membership of the pan-European trade bloc.
The SMMT report points concludes that the attractiveness of the UK as a place to invest, and the competitiveness of the domestic automotive industry, is enhanced by the UK’s membership of the EU.
Benefits for the UK’s auto industry listed in the report include:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData- Access to the Single Market is fundamental to UK vehicle manufacturing, supporting sales and facilitating supply chain growth.
- EU bargaining power in trade negotiations is critical to improving access to international growth markets.
- In shaping regulations and standards, the UK needs a powerful voice at European level discussions to ensure the specific needs of the UK industry are met, safeguarding competitiveness and supporting its diverse nature.
- EU funding has boosted R&D and innovation at businesses and universities in the UK.
- Free movement of labour enables UK manufacturers and suppliers to blend domestic and international talent.
However, the report also says that reform remains high on the agenda – especially the need to reduce complexity, encourage financial reform and consistently apply regulations.
A survey of SMMT members shows that 92% of automotive companies believe that staying in the EU would be best for their business, with a majority seeking a reform agenda. Furthermore, almost 70% believe that a withdrawal from Europe would negatively impact their business in the medium-to-long-term.
“The position of the UK automotive industry is clear – being part of a strong Europe is critical for future success,” said Mike Hawes, SMMT Chief Executive. “This report, and our member survey, shows that Britain’s EU membership is fundamental to investment, growth and jobs in automotive companies of all sizes. The recent success of the UK automotive sector is due to its global competitiveness; competitiveness that is enhanced by a supportive business environment at home and access to the huge single market.
“If we are to maintain this position and increase access to growing global markets, the UK must play a key role in shaping EU policies, budgets and regulations.
“We must also increase our share of EU innovation funding to take advantage of the expertise the UK has in low carbon and other automotive technologies and secure the long-term future of the automotive business in the UK.”
John Leech, Head of Automotive at KPMG in the UK, commented, “Our report shows just how important the EU is to the UK automotive market – it is a highly globalised industry and integrated within the EU. This integration gives global manufacturers with facilities in the UK, for example, access to European consumers. Our analysis shows that, for the automotive industry, it is not a question of the EU versus emerging markets; they want to do business with both.
“The automotive businesses we spoke to also see the EU as an important bargaining force in global trade negotiations. Moreover, research and development, which is vital to the UK’s ability to be at the forefront of innovation in car manufacturing, is both heavily funded by the EU and requires access to the expertise and free movement of skilled engineers within the EU.
“While our report outlines the importance of EU membership to the UK automotive industry, it also poses some challenges to the sector. There is a clear demand for regulatory reform and consistent application of regulation so that complexity can be reduced.”
Click through to see PDF of the full SMMT report, The UK Automotive Industry and the EU
