Automotive industry News UK

Britain features voted to leave the European Union, a decision might have a specific impact on the automotive industry: of 1, 682, 156 automobiles produced within 2015, 77.3per cent had been exported and 57.5% went to European countries.

That equals very nearly 750, 000 cars being exported to the EU: using the typical value of an export being £20, 900, this means £15.6 billion of trade might be in jeopardy if, once Brit export plans are confirmed, a swift quality to trade deals is certainly not found.

Britain’s next-biggest automotive trade partner may be the united states of america, which just take simply 10.9percent of exports: the ramifications are possibly therefore really serious.

Top export spots for UNITED KINGDOM automobiles

1. EU: 57.5percent
2. US: 10.9%
3. China: 7.0%
4. Chicken: 2.9percent
5. Australia: 2.8%
6. Russia: 2.0per cent
7. Japan: 1.8percent
8. South Korea: 1.7percent
9. Canada: 1.2%
10. Israel: 1.2percent

The temporary effect on Uk motorists is also potentially high priced. The RAC has recently predicted fuel expenses will increase by 2p a litre as a result of fall-in the value of sterling, while Glass’s states there will be a slowdown in marketplace task as people defer big-ticket buy choices because of the Brexit anxiety.

The united kingdom automotive industry employs very nearly 800, 000 men and women together with turnover of £69.5 billion in 2015. Seven mainstream automobile makers build cars here, as do eight premium and expert brands. Its the UK’s most crucial sectors.

Right here, after that is how the automotive industry has actually reacted into the news – and keep coming back to even more Motoring Research analysis of what Brexit method for the automotive business…

SMMT

Chief executive Mike Hawes stated: “The British public has opted for a fresh future regarding European countries. Government must today preserve financial stability and secure a deal with all the EU which safeguards UK automotive passions.

“This includes securing tariff-free accessibility European along with other global markets, guaranteeing we could hire talent from the EU in addition to other countries in the world and making the UK more competitive invest Europe for automotive financial investment.”

Jaguar Land Rover

A JLR spokesperson stated: “For Jaguar land-rover, these days is just company as usual. We're an Uk business with a very good manufacturing base inside nation, we call Britain home and we stay devoted to our manufacturing internet sites and investment decisions.

“We respect your decision associated with Brit folks plus in common with all other companies, Jaguar Land Rover will analyse the issues arising from it: currently, absolutely nothing has changed for us or the remaining Uk automotive business.

“Europe is a vital strategic marketplace for our company, comprising 20per cent of global product sales, and we also continue to be positively dedicated to our clients inside EU.

“There will undoubtedly be an important negotiating period, and now we need to understand more info on that as details emerge. We are going to strive 
with all functions to ensure that the importance of the Brit automotive business is fully comprehended at every level of the 
settlement procedure.”

In 2015, Jaguar Land Rover produced 500, 000 automobiles inside UK: 80percent of manufacturing had been shipped to above 180 countries

BMW Group

A BMW GB spokesperson stated: “BMW Group respects the Brit electorate’s decision to go out of the EU. While it is clear there will today be a time period of uncertainty, you will have no immediate switch to our businesses in the UK.

“Today, we realize many of this appropriate problems for supplying the European market will have to be re-negotiated, but of course we can not say what this means for the UNITED KINGDOM functions until those future regulatory and legislative plans are concurred. We'll perhaps not speculate towards outcome of these negotiations nor about any possible impacts that may have on our manufacturing operations in the UK

In 2015, 201, 206 MINIs had been built-in the UK. 80percent of MINIs built in Oxford are exported, and 50percent of the visit European countries

Honda

A Honda spokesperson stated: “A decision happens to be taken by the British people and Honda respects that decision. At this moment, it is not obvious just what problems and guidelines will in the end change the UK’s account regarding the EU. We shall for that reason carefully monitor improvements.

“We still get ready for the production launch associated with the tenth generation Civic from our Swindon plant. Honda remains dedicated to its business in European Countries.”

In 2015, Honda built around 130, 000 automobiles in britain. 40% went along to European countries

Nissan

Motoring Research contacted Nissan for comment: the company said it's making no opinion at this time.

In 2015, Nissan produced 476, 589 and exported 55per cent to European countries

Toyota

A Toyota spokesperson stated: “Going forward we are going to closely monitor and analyse the effect on our company businesses in UK, and how we could preserve competition and secure sustainable development with the UK automotive business alongside stakeholders.”

Aston Martin

An Aston Martin spokesperson stated: “Aston Martin will today orientate its business to deliver our mid-term plan within the framework of this exit additionally the market and forex volatility that will occur throughout change. Once the UNITED KINGDOM could now be susceptible to new trade tariff obstacles, we in addition anticipate the need for extra productivity and effectiveness when you look at the medium term.

“Nevertheless, it is important that national must today maintain financial stability and secure a cope with the EU which safeguards British automotive interests. Including securing tariff free use of European along with other global areas.

In 2015, Aston Martin marketed 3, 500 automobiles

Bentley

A Bentley representative said: “Bentley Motors respects the end result of this EU referendum and will now work with the united kingdom national and engine business to secure a confident future for its business.

“Although it's too early to evaluate the entire implications on our businesses, our cars will continue to be built with the same passion and dedication by our skilled workforce. As a global company, running in many different international areas, we have been well-placed to adjust to altering financial and political circumstances.

“We will always be centered on our exciting programs for brand new services and products. Bentley has a powerful future and certainly will continue being the world’s most popular luxury car brand.”

In 2015, Bentley sold 10, 100 cars, of which 1, 695 (17%) decided to go to continental European countries

Glass’s

Rupert Pontin, Glass’s director of valuations, stated: “A ‘Brexit’ is an interesting result that sees great britain greatly set about a unique section this is certainly largely unwritten.

“If the Brexit voters are correct within their thinking, it might create higher prosperity when it comes to country ultimately but, within the next month or two and years, the street will probably be really bumpy. Areas are going to be affected, since will the worth regarding the pound, and then we expect to see consumer self-confidence tail off before view of this means ahead becomes better. The length of time this will take is difficult to anticipate.

“For the engine business, a few of these improvements are likely to have side effects including a time period of uncertainty for new and car or truck sales, as well as a rise in pre-reg activity and downward force on values.

Path Haulage Association

Chief executive Richard Burnett said: “This is an ‘earthquake minute’ for the whole country, the economy and our industry. We simply cannot take everything for issued. It’s essential that Ministers plus the Bank of England work quickly to steady areas and nerves.”