The president of the Society of Motor Manufacturers and Traders (SMMT) has warned that lack of progress on Brexit – and fears over the implications of leaving the single market – are undermining the competitiveness of the UK’s automotive industry.

Speaking at the trade association’s annual dinner in London, Tony Walker, – a 40 year veteran of the automotive industry, and deputy managing director of Toyota Motor Manufacturing UK – called for quicker progress on agreeing a transition period following Brexit and argued that in order to give industry time to adjust and secure long-term investment decisions, such a period should be on the current terms and not time-limited in order to give industry.
Praising the sector for its transformation over the past 25 years, Walker warned that this progress is now under threat.
“I am very proud that today our UK automotive industry competes globally on quality, productivity, flexibility and cost,” he said. “But we are not complacent. Competitiveness comes hard-won. It can be easily lost. A hard Brexit would undermine all that we have collectively achieved. It is a real threat – a hurdle we cannot ignore. After all the difficulties we have overcome, all the changes we have made and the innovations we have brought, we do not need trade barriers to be our next challenge.”
He added that the lack of progress over Brexit was already having an impact on the sector. “We have huge challenges. Consumer confidence has fallen leading to a downturn in sales. Uncertainty about Brexit – and market confusion over diesel – are taking their toll.”
Newly released figures from the SMMT illustrate the high stakes of a no deal Brexit for the sector. The risk comes not just from costly WTO tariffs – which would add at least £4.5bn to the industry’s annual overheads – but also from the imposition of customs checks, red tape and fees on goods that currently move friction-free across borders.
According to SMMT, every day, over 1,100 trucks for UK car plants cross into the UK from the continent – the vast majority without being checked at customs – to deliver some £35m worth of components to UK vehicle and engine plants. And every day, these components help build 6,600 cars and 9,800 engines – the bulk of which are then shipped back to EU customers and assembly plants.
Considering that we’re going to pay 50Bn anyway, why not just stay in? Tell Farage and his lot that we’ve left and just carry on as normal. I guarantee the man on the street wouldn’t notice the difference.
If Farage hates the EU so much, how can he take his £73K annual pension with a clear conscience?
We have the choice of either continuing to accept all the EU standards and rules (like Switzerland and Norway) or give up international trade, so there will be no “bonfire of the red tape”. We have to keep accepting workers from the EU or give up growing food. We have to have visa-free travel or screw up all our holidays. We have to accept customs-free trade or screw up Ireland. So, as you say, the man in the street will never know and the only change will be some notional concept of sovereignty that only interests political geeks. You’re right, the whole thing is a magnificent folly.
Or, and don’t shoot me down here, companies could look to shorten supply chains and boost employment by re-shoring more automotive manufacturing to the UK. After all some 2.25m new cars have been registered in 2017 ytd.
Perhaps we will all end up heaving a vast sigh of relief when the Article 50 declaration is revoked. The present bunch are doing a fine job of demonstrating that Brexit just can’t be done!
Shame about your holidays, you will have to have a Visa again, hopefully. Perhaps the SMMT should tell the EU to get on with it as well.
Chris Elliot sums it up-the whole matter make me sick of the other half of this country-what was the majority vote to leave? Couple of percent or less, decision made on a straight “in” or “out” vote, no stating the possible/probable results of leaving, making the whole sorry episode a matter of biased prejudice of “foreigners” 25 miles away…….”foreigners” who on the whole live better than us, less of the vast difference in income and life-style of the UK (vive le Revolution!).
“What a way to run a country!!”
Tory mp Dominic Grieve summed Brexit up perfectly as “a case of national self mutilation”.
Talking of autos, I bought a sleeve-valve tourer in Baldock in 1963 for a fiver. Still have it, and greatly enjoyed the experience of working in the UK, and the culture shock, – the pill, mini-skirts, Profumo and all. As an Irishman and a neighbour, we’d be delighted if the UK would ‘remain’ along with the rest of the EU, – you are needed. What’s the hassle about another referendum, surely it’s advisory?
Have to agree with most of the comments. The whole thing is an enormous mistake for the country and the younger generation who have grown up as part of Europe. The country cannot afford to lose its free trade and many of the joint systems particularly security and defence.
Give it 5 years and the younger generation will decide that the UK has made a monumental mistake and decide to apply for EU membership.
Looking at the comments, at least engineers still have the sense to realise that we cannot survive outside the EU. A hard Brexit will change the UK forever. We must stop this now.