What Impact will Brexit have on the Automotive Sector?
In Theresa May’s speech on her Brexit strategy on the 17th, she highlighted a key theme that will surely cause a significant ripple within the automotive sector in the UK. Indeed, that theme focused on the single market.
Leaving the EU, leaves Britain in a precarious situation in regards to potential trading tariffs; some have speculated that if tariffs were implemented, the automotive economy within the United Kingdom may start to be choked and will suffer as a result.
May addresses this point and resultantly shows reassurance in a time of much uncertainty. Although in May’s eyes it is essential for the UK to leave the single market, it is just as essential that custom free trade agreements be implemented to ensure that the economy does not suffer.
May continues to state that: “We want to buy your goods, sell you ours, trade with you as freely as possible, and work with one another to make sure we are all safer, more secure and more prosperous through continued friendship”
So what exactly does this mean for the automotive market? Mike Hawkes, SMMT (Society of Motor Manufacturers and Traders) Chief executive stated that:
“We need government to deliver a deal which includes participation in the customs union to help safeguard EU trade, trade that is tariff-free and avoids the non-tariff and regulatory barriers that would jeopardise investment, growth and consumer choice…“Achieving this will not be easy and we must, at all costs, avoid a cliff-edge and reversion to WTO tariffs.”
In essence, Hawkes explains that trade restrictions could potentially be crippling to the automotive industry
The suggestion has been supported by none other than Aston Martin CEO Andy Palmer, who stated that:
“We strongly believe in the principles of free trade on a global basis, which includes access to and from markets in the European Union. As a company that exports to over 50 markets across the world, Aston Martin supports the principles being taken by the Prime Minister to ensure that British companies have fair access to all global markets. As a company employing a wide diversity of nationalities, we further support the assurances being proposed by the Prime Minister to protect EU citizens living in the UK and UK nationals living in Europe.”