The government must maintain the existing customs union membership and single market benefits as part of its Brexit negotiations or risk causing grave damage to the UK car industry, Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes has warned.
Membership of the customs union and maintenance of the benefits the single market delivers is seen as crucial as the automotive industry relies on the seamless movement of goods around Europe, with more than 1100 trucks from the EU bringing components to UK car and engine plants every day.
Speaking at the SMMT’s annual conference, Hawes said: “There is growing frustration in global boardrooms at the slow pace of negotiations. The current position, with conflicting messages and red lines goes directly against the interests of the UK automotive sector which has thrived on single market and customs union membership.
“There is no credible ‘plan B’ for frictionless customs arrangements, nor is it realistic to expect that new trade deals can be agreed with the rest of the world that will replicate the immense value of trade with the EU. Government must rethink its position on the customs union.
“There is no Brexit dividend for our industry, particularly in what is an increasingly hostile and protectionist global trading environment. Our message to government is that until it can demonstrate exactly how a new model for customs and trade with the EU can replicate the benefits we currently enjoy, don’t change it.”
Hawes comments followed the release of industry figures showing record turnover among automotive businesses in the UK, which he said were the result of long planned investments which were now slowing as a result of uncertainty caused by Brexit.
The UK Automotive’s 19th annual Sustainability Report revealed the manufacturing sector turned over a record £82 billion in 2017, marking an eighth consecutive year of growth. As a result, the sector’s direct economic contribution now stands at £20.2 billion. Estimates suggest the impact on adjacent sectors raises that contribution to £202bn - around 10% of the UK’s GDP.
Employment in the automotive manufacturing sector also rose in the past year by 2.8%, to 186,000, with employment across the wider industry reaching 856,000.
However, in the first six months of 2018 production output has fallen in line with demand, while manufacturers including Jaguar Land Rover have announced job cuts and investment by manufacturers has stalled. To date £347.3 million has been earmarked for new models, equipment and facilities in the UK this year – around half the sum announced in the same period last year.
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Symanski
Stop Brexit.
It's the only answer to protecting British jobs and British industries.
There is no Brexit dividend. The £ 20bn that PM May promised to the NHS doesn't exist. We pay £ 8.6bn for membership of a huge trading area. A club fee we reap more benefits back in return. £ 8.6 - £ 20bn is a negative number! PM May already announced tax rises to pay for the shortfall; it will be £660 per working person that's required for her £ 20bn promise.
Brexit is doing enourmous damage now, and it's damage which will the UK may never recover from. If the car industry stops investing in their UK factories that investment will be made elsewhere in the EU, and its those European factories will have a future beyond the current models.
The UK is shooting itself in both feet with Brexit.
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@Symanski
Bullshit, you shouldnt believe everything you read from the SMMT
Symanski
I didn't read.
I didn't read from the SMMT. There's enough from lots of companies themselves on Brexit. Airbus and BWM last week were the too latest.
But don't take their word, look at Jacob Ress-Mogg. He's just move his business interests to Ireland so they don't get affected by Brexit. Why would one of the biggest proponents of Brexit do that?
max1e6
Symanski
There will be a 'BREXIT dividend' if all of the advantages of BREXIT are utilised. The UK could be better off overall by as much as £100 billion each year after BREXIT.
At the moment, British taxpayers are having to pay for public services and benefits for millions of EU citizens. This can be stopped after BREXIT.
The EU has been allowed to send the dregs of its member states to the UK - the criminals, the homeless, the drug addicts, the alcohol addicts. The UK has to spend millions of pounds each year dealing with EU criminals and keeping them in UK prisons.
The list of costs caused by the EU is almost endless - it is a very long list.
80 per cent of UK businesses do not export to the EU.
BREXIT is not just about money. It is also about democracy, sovereignty, quality of life and safety.
The housing shortage, heavily congested roads, jobs taken by EU citizens so young people cannot get jobs. The list goes on.
Rtfazeberdee
EH?
what planet are you living on? a flat earth? that post was so full of nonsense you should go and hide from the embarrassment.
armstrm
What part of the post was
What part of the post was nonsense? Just because you say it is I presume? Are you telling us that nothing stated in the post is true? No EU nationals have come to the UK, no EU nationals use and public services or or roads? No EU nationals occupy any homes? There are no EU criminals in the UK?
Rtfazeberdee
EH?
what planet are you living on? a flat earth? that post was so full of nonsense you should go and hide from the embarrassment. Change your reading matter from Delusional and Conspiracy Theory Weekly
max1e6
Rtfazeberdee
Which parts of my comment are nonsense?
You seem to have a problem with British democracy.
typos1
Rtfazeberdee wrote:
Planet fascist I think.
Symanski
Racism and bigotry.
Isn't it sad that racism and bigotry are dictating the damage that's being done to Britain through Brexit. I thought us Brits were better than that.
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