Car manufacturers push to stay in EU
Continued access to EU markets will have a positive impact on the performance of the majority of the UK’s automotive firms, a new study has concluded.
The Society of Motor Manufacturers and Traders commissioned an independent survey to find out what its members think about the EU and the impact leaving the common market would have on their businesses.
The survey, conducted by ComRes on behalf of the SMMT, found that if the referendum was conducted tomorrow, 77 per cent of SMMT members would vote to stay in the EU.
A massive 88 per cent of large automotive companies who are SMMT members and 73 per cent of SME members (which made up almost three quarters of respondents) said they would opt to stay.
Just 9 per cent of respondents said leaving would be the best option, less than the proportion which are uncertain (14 per cent).
No large companies surveyed said an exit would be in their business’ best interests.
Two thirds (66 per cent) of those surveyed said continued free access to European markets would benefit their businesses.
The EU also affords many of the businesses (55 per cent) good access to a skilled a workforce, while more than half (52 per cent) of those surveyed said being in the EU offered them better scope to influence industry standards and regulations.
The SMMT said that when asked to provide open-ended feedback, members said some of the key reasons for staying in the EU were: the importance of economic and market stability, securing the UK’s global competitiveness, and access to the single market’s free trade opportunities.
Of those responding, 59 per cent of SMMT members said an exit would have a negative impact on their business in the medium- to long-term, with a further one in five uncertain about the nature and extent of that impact (18% don’t know).
When those foreseeing a negative impact were asked why, fears included becoming uncompetitive and losing business to EU rivals, while the risk of future investment being diverted to the continent also featured highly.
The findings have been backed by a host of large manufacturers and suppliers.
BMW said staying in would protect the British end of its operation and in a separate move, the German group has contacted all its British workers to explain to them what might be at stake should Britain leave the EU.
Elsewhere, Tony Walker, deputy managing director, Toyota Motor Manufacturing UK, said: “Our UK operations are fully integrated within our European business – exporting nearly 90 per cent of all UK built vehicles.
“We are very satisfied with the performance our UK operations and are committed to our employees and investments. We also recognise that the UK’s future relationship with the European Union is a matter for the British people to decide. After considered review, we believe that continued membership of the European Union is best for our business and for our competitiveness in the longer term.”
