Brexit: the UK Automotive Industry Reacts
From Richard Aucock/Motoring Research
Britain has voted to leave the European Union, a decision that could have a particular impact on the automotive industry: of the 1,682,156 vehicles produced here in 2015, 77.3% were exported and 57.5% went to Europe.
That equals almost 750,000 cars being exported to the EU: with the average value of an export being £20,900, this means £15.6 billion of trade could be in jeopardy if, once British export plans are confirmed, a swift resolution to trade deals is not found.
Britain’s next-biggest automotive trade partner is the United States, which take just 10.9% of exports: the ramifications are potentially thus serious.
Top export destinations for UK cars
- EU: 57.5%
- US: 10.9%
- China: 7.0%
- Turkey: 2.9%
- Australia: 2.8%
- Russia: 2.0%
- Japan: 1.8%
- South Korea: 1.7%
- Canada: 1.2%
- Israel: 1.2%
The short-term impact on British motorists is also potentially costly. The RAC has already predicted fuel prices will rise by 2p a litre due to the fall in the value of sterling, while Glass’s says there will be a slowdown in market activity as people put off big-ticket purchase decisions because of the Brexit uncertainty. READ MORE …
