The UK is due to leave the European Union on the 29th March, following the results from the public referendum held on the 23 June 2016. Despite ongoing negotiations between the EU and UK, there is currently no agreement in place once the UK leaves the EU.
The UK automotive industry is one of Britain’s most successful sectors; with a turnover of over £82bn a year and over 800,000 employees, it is responsible for almost one tenth of the country’s manufacturing output. The single market and customs union have been hugely instrumental to the success of the industry, allowing for frictionless trade which has allowed a highly integrated supply chain to form between the EU28 Member States. Without a deal in place it is uncertain exactly what Brexit will mean for the automotive industry, however the risk of losing access to the single market and customs unions are among key concerns.
This paper looks at issues facing the automotive industry post-Brexit, and how the government can ensure the industry remains competitive and continues to thrive.