The Society for Motor Manufacturers and Traders (SMMT) has penned an open letter to Boris Johnson, urging the newly-appointed prime minister to avoid a no-deal Brexit.
Mike Hawes, chief executive of the SMMT, explains in the letter that the automotive industry is expecting to see more change in the next 10 years than there has been in the last 50. “The UK sector remains strong, with high levels of productivity, a skilled and flexible workforce, and first-rate research and engineering facilities, so we are well placed to take advantage of the opportunities that will emerge.
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“Automotive is, however, a highly competitive sector internationally, with fine margins. We cannot afford to be complacent, and we need the right policy, business and trading environment if we are to thrive.”
Hawes asks Johnson to support the transition to zero emission vehicles by investing in charging infrastructure, increasing consumer incentives and securing a gigafactory in the UK to secure an efficient supply chain for electric vehicles in the UK.
“Automotive is a key driver of productivity an innovation,” continued Hawes. “It contributes £18.6bn to the UK, employs hundreds of thousands and makes the most significant contribution to UK trade of any manufacturing sector, helping balance the economy right across the country. In short, when automotive succeeds, so does the UK.”
The success of the UK automotive industry, according to Hawes, will depend on the outcome of the Brexit situation. “A no-deal Brexit presents an existential threat to our industry,” said Hawes. “We are highly integrated with Europe, and a no-deal Brexit would result in huge tariff costs and disruption that would threaten production, as well as further undermining international investors’ confidence in the UK.
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By GlobalData“We need a deal with the EU that secures frictionless and tariff free trade. No-deal Brexit is simply not an option.”
