A knife through the heart of one of Britain’s oldest and most lucrative industries.
Nissan is the latest to warn of Brexit’s devastation, not only for their company, but also to the jobs of the 7,000 people employed at its Sunderland plant, and also — ultimately the economy.
Time and time again, the Society of Motor Manufacturers and Traders (SMMT) — one of the largest and most influential trade associations in the UK — and car makers have been very clear with warning, that Brexit will prevent the UK automotive industry from being globally competitive as well as operationally effective.
There’s no form of Brexit which will benefit our automotive industry. That’s a fact which has been spelled out thousands of times. It’s not just the customs controls at ports which will be a problem for the seamless operation of ‘just-in-time production’ used by car makers, but it’s also worth mentioning the issue of tariffs.
Crashing out of the EU will cost car makers billions of pounds to operate, with the parts and components needed to build a car, crossing the Channel several times before reaching its final destination — and getting built into a part of a complete car.
If that wasn’t enough — there’s also a problem with regulations. If the UK leaves the EU, the safety and acceptance of cars built in the UK will be subject to a huge increase of regulatory checks... not just in Europe, but globally. At the moment, the US imports British-made cars, because they meet the EU rules. If we leave the single market, however, we will have to prove not just to our European neighbours, but to our allies across the pond that the plastics, paint and components in the car are safe for use. For every vehicle!
And issue number four brings us onto the movement of people. Without getting into the debate on high and low skilled labour, the automotive industry is a market reliant on both levels of labour, and preventing the right people from doing the right jobs will be devastating.
These four problems, don’t begin to encapsulate the mountain needed to climb, to keep this industry afloat, but it should be clear enough to see, that leaving the EU will be the knife through the heart of one of Britain’s oldest and most lucrative industries.🔷
TWEET THIS STORY NOW:
(This piece was originally published on the Pimlico Plumber’s blog.)