British car manufacturers

Brit car production struck a 16-year saturated in initial 1 / 2 of 2016, nevertheless business says future development, jobs and investment are in risk after the Brexit vote.

Almost 900, 000 vehicles rolled off production lines at UNITED KINGDOM factories in the first six months of the year, 13percent more than the same period in 2015.

It had been top half-year overall performance since 2000, according to the Society of Motor Manufacturers and dealers (SMMT), as huge amounts of weight of earlier in the day investment in new designs stumbled on fruition.

About 78% of cars integrated British production facilities in the first half-year had been destined for other nations, with all the EU the biggest marketplace.

Mike Hawes, the SMMT’s leader, said the outlook for British vehicle production had been uncertain given that Britain had opted to pursue a future away from EU.

“The most recent boost in production result could be the result of investment decisions made over several years, prior to the referendum ended up being even a possibility.

“These decisions had been centered on numerous factors but primarily on tariff-free usage of the solitary marketplace, economic stability and record degrees of output from a highly skilled staff. To guarantee the industry’s proceeded development, with it the large number of tasks it aids, these needs to be concerns in the future negotiations.”

The SMMT stated a survey of their users – including major car makers such as for instance Nissan, Toyota and Mini as well as smaller businesses – demonstrated companies had been focused on Britain’s commitment along with the rest of European countries after the Brexit vote.

About 60% of components supplied for vehicles built-in the UK tend to be brought in, mainly from continent. For the users the SMMT surveyed, 57% thought Brexit would have an adverse effect on their company.

The largest issue ended up being the possibility bad effect of tariffs, custom fees alongside obstacles involving the UK together with EU solitary marketplace.

Other major problems included a loss in access to EU trade deals, having no say in – but becoming bound by – regulations inside their biggest export marketplace, in addition to losing access to competent workers from within the EU.

“The UK automotive manufacturing industry is continuing to grow considerably in the last several years and now employs 169, 000 folks, including numerous skilled EU nationals recruited to fill vacancies that the local labour power could not satisfy.

The possible lack of certainty concerning the future standing of these workers in the UK had been reported usually as a concern, ” the SMMT said.