Brexit has been the word on everyone’s minds and in everyone’s mouths over the past few months, but what does it really mean for the UK car industry? BMW has recently expressed concerns that failing to reach a trade deal that is beneficial for all could potentially seriously damage the UK’s motor industry.
The UK motor industry, whether in manufacturing or sales, generates thousands of jobs across the country. But with around 80% of the cars manufactured in this country being exported every year, a ‘hard’ Brexit could be disastrous for the sector. Around 56% of these exports are to European countries, meaning that the introduction of post-Brexit trade barriers could result in a huge reduction in exports.
"BMW does not intend to move their manufacturing outside of the UK".
BMW’s UK representative, Ian Robertson, suggests that a change in the customs process could drive up the prices of cars. Despite this, he insists that BMW does not intend to move their manufacturing outside of the UK. This is good news, BMW being a major UK employer, with around 22,000 employees over its manufacturing and retailing networks across the country.
Kōji Tsuruoka, Japanese ambassador to the UK, also cautioned that any friction between the UK and the large markets that they export to – the EU being one of them – could lead to problems for the motor industry. He also suggested in another interview that the UK used to be a gateway to Europe for many countries outside the EU trade deals, but as this shifts, it will bring changes to the industry.
"The situation for the motor industry is uncertain".
It is a worrying time for the motor industry, but encouraging steps are being taken by companies such as BMW, Toyota and Vauxhall to brace against the potential threats of Brexit.
Vauxhall recently pledged to produce its new Vivaro van in the UK, which could generate more jobs in the UK and is an encouraging sign that companies have faith in the UK, and in Brexit.
The situation for the motor industry is uncertain, but pledges of manufacturing even more cars in the UK are helping it to seem more secure, despite the turmoil of Brexit negotiations.
