"No deal would doom us to decline" ???.... Brexit and the UK Automotive Industry

Beaumont Select support Major Name Automotive Clients in the UK and Europe. We think an interesting and concise summary from the SMMT of the problems Brexit uncertainty is bringing the automotive industry, including a useful summary of future trade models and what they offer….See the SMMT on Brexit here

The SMMT have identified five focus areas to safeguard the UK automotive industry; and how these would be supported in future possible trade models.

SMMT’s priorities focus on five areas:

• Single Market – To achieve automotive priorities on tariff-free trade and avoiding non-tariff barriers, government must demonstrate how it intends to secure a future trade agreement with the EU that affords the automotive industry the benefits currently enjoyed as members of the Single Market.

• Customs – Under a new customs agreement with the EU, government should prioritise the free-flow of automotive goods at the border to avoid costs, maintain competitiveness and support the just-in-time manufacturing process. Key issues include continued application of common customs rules and procedures without burdensome checks or reporting.

• Talent – Government must address the needs of the automotive industry in its ability to recruit and access talent when assessing how the UK ends freedom of movement and implements new immigration controls. Key issues include access to labour to fill skills gaps and the current ability for automotive companies to quickly and easily move employees to address operational issues or support project teams.

• Regulation – Government should demonstrate how existing automotive regulation fits within plans for the ‘Repeal Bill’ and work through options for how future EU regulation affecting the UK automotive industry can be effectively implemented. Key issues include future influence on regulations affecting the UK automotive industry, the potential to create non-tariff barriers through regulatory divergence and the ability for the UK to type approve vehicles for the European market.

• Trade – Clarity is needed on how the UK will treat both existing EU Free Trade Agreements and those currently under negotiation. Key issues include establishing solutions to issues around Rules of Origin, understanding how existing preferential access to markets can be secured