The US automotive industry was one of the most pessimistic industries to partake in a survey law firm Gowling WLG conducted of US businesses on the topic.

Four in ten (42.1%) of US automotive companies with a base in the UK said they were considering relocating to the EU.

A similar number (45%) said a delay of two years for Britain to leave the EU will have a negative impact on their business.

There was some encouragement to be found, however. 77.5% of US automotive companies said they favoured a direct trade arrangement with the UK.

Stuart Young, partner at Gowling WLG and head of the automotive sector said: "The outcome of the UK's EU referendum has certainly created a degree of uncertainty among US automotive businesses, with almost half (45%) being concerned about the negative impact of potentially protracted negotiations on their organization. However, our research shows most are adopting a 'wait and see' approach, with the overwhelming majority making no changes to their investment strategy."

According to Young, there are two main issues the sector wants clarity in: the UK’s place in the Customs Union and potential tariffs, and the free movement of Labour.

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By GlobalData

Young said: "The outcome of the UK's EU referendum has certainly created a degree of uncertainty among US automotive businesses, with almost half (45%) being concerned about the negative impact of potentially protracted negotiations on their organization. However, our research shows most are adopting a 'wait and see' approach, with the overwhelming majority making no changes to their investment strategy."