The UK’s specialist and low-volume vehicle industry has surged in value by 52% in five years – but experts warn a bad Brexit deal could put the brakes on progress.
Output of Britain’s low-volume car makers, which collectively employ 11,250 people, has grown by 25% since 2012, increasing the sector’s contribution to the economy to £3.2 billion.
Figures released by the Society of Motor Manufacturers & Traders (SMMT) show that a continuation of this could see annual production reach 52,000 vehicles in 2020, a growth of 60% on today.
But SMMT CEO Mike Hawes has highlighted the sensitivity of Britain’s low-volume sector during Brexit negotiations, stating that a good deal for trade will be vital to prevent one of Britain’s greatest industries from being held back.
“Our specialist car manufacturing sector is one of the UK’s global success stories – making world-leading products and pioneering next-generation technologies that benefit everyone,” he said.
“For this to continue, we need certainty on Britain’s future trading relationships, including customs plans, market access, regulations governing the design, production and approval of vehicles, and rules around movement of skilled workers.”
Britain’s low-volume car manufacturers – comprising supercar makers such as McLaren, luxury companies such as Rolls-Royce, the recently relaunched TVR and sports car brands including Lotus – have pushed the sector’s exports to represent 65% of sales. Meanwhile, 30% of components used in the sector’s cars are sourced from the European Union.
“This event isn’t just about telling the world about the importance of our sector, it’s about doing what we can to educate the politicians about what we’ll need in the future," John Chasey, operations director at TVR said. "We want the car we create to be compliant in as many regions as possible, but if some of the derogations that provide the structure are lost in the Great Repeal Bill, it’ll get a lot more difficult."
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It does make me laugh
Yes, bring on all those 'the end is nigh' predictions. After all, the last lot of 'sky-will-fall' silliness worked out so well after June 23rd, didn't it? I seem to remember a particular gimp called George Osborne making these predictions. Now, whatever happened to gorgeous George?
Bazzer wrote:
If one positive came out of Brexit, it's not having this odious cretin anywhere near a position of power.
UK low-volume car sector is niche luxury!!!
Surely the UK low-volume car sector is all "niche" luxury/sport/specialist vehicles that sell for premium prices to mostly markets outside the EU. Hence if no deal is done with the EU, & we resort to WTO rules, any price increase will only make these cars only more desirable to wealthy buyers?
We don't sell many luxury vehicles to France or Italy do we? ( & definitely almost none to Spain, Poland & Slovenia & the others)
Maybe we sell a few more to Germany because they're a bit more wealthier but most Germans would buy their home grown luxury cars.
Also if there is an "Hard Brexit", the Pound will plummet & the price of importing Engines from the EU would be offset by very cheap labour & production costs in the UK.
Pound exchange rate
The pound will not 'plummet'. Its value has changed because of uncertainty and because certain people are using their financial power to affect the exchange rate to try to put us off leaving the EU.
The UK should leave the EU today with no negotations and no exit payment. End the uncertainty and move forward.
There won't be an EU after the UK has left. The Euro currency will collapse.
You have no clue
I cannot believe just how delusional Brexiteers are. You're talking complete crap. Volume car manufacturing in the UK is about to start dying a slow death. That is, IF Brexit does go ahead.
There are ALREADY decisions being made about shifting production to the EU, so it is already starting to lose out. Brexit will accelerate that.
"British" car brands are already made abroad to a degree, witness Mini, Jaguars and Land Rovers. This will only increase over time. They have to build 'in market' to ensure profitability, exporting from the UK into China for example means that customers are footing the high import tariffs and being disuaded.
Other volume manufacturing plants in the UK, like Nissan are put at risk by Brexit. They're working with less profit margin. It wouldn't take much money, or time, for them to invest in a Eastern European plant, where labour rates are lower and where the supply chain is already based. A lot of those Hyundais and Kias you see on the roads are from Czech and Slovakia, you know.
If you consider the top 10 best selling cars in the UK, mostly Fords, Vauxhalls, VWs, Mercedes made outside of the UK. UK car buyers do not care for where a car is made.
The industrial catastrophe that Brexit will wreak on the UK, will be the fault of all of those that voted for it.
Yea
Yep Ford will take production of our best selling Fiesta, Escort, JLR will take production out to out to mainland Europe too if we leave the EU.
What do mean they done that already with funds from the EU (i.e. from the UK taxpayer)
max1e6 wrote:
stop stop.... i can't laugh anymore , it hurts
Reality
UK companies should adjust their company operations now to be ready for EU tariffs and EU rules for exporting goods to the EU.
The transition period is 24th June 2016 to March 2019. Companies must be ready for March 2019.
max1e6 wrote:
They will be. I am sure they are now, as we I type eyeing up locations within the EU in which to relocate their operations and make the transition as seemless as possible.
EU taxes and rules
Where are the UK car manufacturers going to go?!
There won't be an EU once the UK has left.
max1e6 wrote:
ROFL...