The automotive industry has strongly urged the UK to maintain a strong voice in the European Union according to a report complied by the accountancy firm KPMG and UK industry body the Society of Motor Manufacturers and Traders (SMMT).
Of the companies surveyed in the report 92% believed that staying in the EU would be best for their business.
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70% also believed that a withdrawal from the EU would negatively impact their business in the UK in the medium to long term.
Despite this belief the majority of the business’s maintained that reform was of high importance, particularly in reducing the complexity of doing business across the EU and the application of regulations consistently across the community.
Being part of the EU brought fundamental benefits to the UK automotive industry the report also found. It increased the attractiveness of the UK as a place to invest, gave access to a larger market for manufacturers and increased the bargaining power of the industry as part of the larger EU wide industry.
In addition the free movement of labour enabled the industry to attract and blend domestic and international talent.
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By GlobalDataMike Hawes, chief executive of the SMMT, said: "The position of the UK automotive industry is clear – being part of a strong Europe is critical for future success."
John Leech, head of automotive at KPMG in the UK said: "While our report outlines the importance of EU membership to the UK automotive industry, it also poses some challenges to the sector. There is a clear demand for regulatory reform and consistent application of regulation so that complexity can be reduced."
