The EU referendum has been dominating the news for weeks with voters heading to poll stations later this week. There are many that want to leave the EU and many that want to stay which should make for an even vote. Car manufacturers on the other hand aren't as divided and are very keen to stay within the EU, the SMMT have described remaining in Europe as 'critical' to the future of the UK automotive industry.
The car manufacturing industry may not be as booming as the days of British Leyland but it's still a large industry that provides 800,000 jobs and contributes £15.5billion to the economy per year. In addition to this, 57.5% percent of the cars exported head to the EU, making use of unrestricted access to the world's largest single market. Being out of the EU would make for more difficult negotiations which is likely to jeopardise UK business and jobs.
What does the SMMT say?
Mike Hawes, SMMT Chief Executive, said, “UK Automotive is globally competitive, securing record levels of investment, creating tens of thousands of jobs annually and exporting to over 100 countries. We want this success to continue rather than jeopardise it by increasing costs, making our trading relationships uncertain and creating new barriers to our single biggest and most important market, Europe. Remaining will allow the UK to retain the influence on which the unique and successful UK automotive sector depends."
What do the manufactures say?
Well 77% of SMMT member companies will opt to stay in the EU but what do they have to say on the subject?
Ken Gregor, Chief Financial Officer of Jaguar Land Rover, said, "Remaining in the EU – our largest market – will increase Jaguar Land Rover's chances to grow, create jobs and attract investment in future technologies. Our European supply chain has been fundamental in helping us to meet customer expectations worldwide and achieve sustainable, profitable growth.”
Tony Walker, Deputy Managing Director, Toyota Motor Manufacturing UK, said, “After considered review, we believe that continued membership of the European Union is best for our business and for our competitiveness in the longer term.”
Dr Ian Robertson, Member of the Board of Management, BMW AG, said, “We firmly believe Britain would be better off if it remained an active and influential member of the EU, shaping European regulations which will continue to impact the UK whatever the decision on Thursday.”
Rory Harvey, Managing Director and Chairman of Vauxhall, said, “We are part of a fully integrated European company where we benefit from the free movement of goods and people. We believe not to be part of the EU would be undesirable for our business and the sector as a whole.”
Nigel Stein, Chief Executive, GKN PLC, said, “We see a real benefit in remaining in the EU. A vote to leave will not mean manufacturing investment disappears overnight, but over time a UK outside the EU will be disadvantaged and will lose the investment it needs to maintain our industries.”
Gamil Magal, Group Chief Executive, Magal Engineering Limited, a medium-sized Tier 1 components supplier, said, “Full unhindered access to the European single market is essential for Magal Engineering’s UK operations and growth.”