Britain’s automobile industry faces an uncertain time following a mandate that will put the United Kingdom outside the European Union.
Industry specialists have been rushing to understand the effects of what one group referred to as “the most significant event” in Britain’s modern history.
The UK is the home of lots of car manufacturing plants from the likes of domestic brands such as Aston Martin, Bentley, Caterham, Jaguar Land Rover, Lotus, McLaren, Mini, Rolls-Royce and Vauxhall along with foreign ones such as Ford, Nissan, Toyota and Honda.
The carmakers manufactured a total of 1.58 million cars in 2015, a 10-year high for UK production.
The British car market reached record export levels in 2015, delivering more than 1.2 million automobiles out of the UK. Interestingly, about 700,000 of them gone to nations within the European Union.
However that figure could be under threat in coming years as the UK leaves trading arrangements developed within the EU to forge its own contracts within the continent and further abroad.
The “Brexit” choice to leave the EU has not been welcomed by crucial elements of the car market. The Society of Motor Manufacturers and Traders (SMMT) was in support of continuing to be within the EU, asserting that remaining in the European Union is best for its business and finest for British jobs.
Many known automakers consisting of Jaguar Land Rover, Toyota, BMW, Vauxhall and huge parts supplier GKN were also supporting to remain within the EU as it allows a complimentary motion of items and individuals throughout the continent.
Mike Hawes, president of the SMMT, stated the UK Government need to work to establish a bargain for British company, consisting of duty-free import and export contracts with crucial markets.
Some vehicle business, like BMW said it is prematurely to say precisely what the repercussions of Brexit will be, at least up until “future regulatory and legal arrangements are agreed”.
However, David Wells, chief executive of the UK’s Freight Transportation Association, states the choice to leave the EU could make it more difficult to get work done.
