Britain’s car manufacturers reportedly have urged prime minister Theresa May to rethink her position on the European Union customs union as investment in the country’s motor industry has halved this year.
According to Sky News, the Society of Motor Manufacturers and Traders (SMMT) said investment in new cars and plants slumped to GBP347m in the first half of this year, down from GBP647m a year ago.
Go deeper with GlobalData
More than 850,000 jobs directly and indirectly employed in the sector are at risk because of Brexit, the trade body warned, as it called on the government to stick with the benefits of the single market.
Chief executive Mike Hawes said: “There is growing frustration in global boardrooms at the slow pace of negotiations.
“The current position, with conflicting messages and red lines, goes directly against the interests of the UK automotive sector which has thrived on single market and customs union membership.
“There is no credible plan B for frictionless customs arrangements, nor is it realistic to expect that new trade deals can be agreed with the rest of the world that will replicate the immense value of trade with the EU.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Government must rethink its position on the customs union.
“There is no Brexit dividend for our industry, particularly in what is an increasingly hostile and protectionist global trading environment. Our message to government is that until it can demonstrate exactly how a new model for customs and trade with the EU can replicate the benefits we currently enjoy, don’t change it.”
“There is no Brexit dividend for our industry, particularly in what is an increasingly hostile and protectionist global trading environment. Our message to government is that until it can demonstrate exactly how a new model for customs and trade with the EU can replicate the benefits we currently enjoy, don’t change it.”
Sky News noted this was the latest call for clarity over Britain’s future trading position with the European Union after BMW warned it could not manufacture its products in the UK if Brexit disrupted its supply chain with border checks.
