Car makers urge ‘no’ vote in EU referendum
SOME of Britain’s biggest automotive companies have said that the crucially important industry will be better off if Britain remains part of the EU.
The body which represents much of the industry, the Society of Motor Manufacturers and Traders, said a survey of members had shown more than three quarters of companies involved in the industry in the UK wanted the country to stay in the EU.
However, German carmaker BMW – which sides with the majority – has gone a stage further and sent a letter to its workers in the UK hinting that operations at MINI and Rolls-Royce could be severely impacted if there is a vote to leave the EU on June 23.
The letter states free trade is important to the group, with its cars sold across the continent and a large number of components bought in from the UK.
More than half of MINIs built and virtually all of the engines for the car are made in the UK – the latter at the firm’s engine plant in Hams Hall – and then exported into the EU.
It states: “Tariff barriers would mean higher costs and higher prices and we cannot assume that the UK would be granted free trade with Europe from outside the EU.
“When it comes to regulation, whether the UK remains inside the EU or leaves it, with Europe as the UK’s largest export market by far, we would have to abide by European rules and regulations in any case.
“We believe it’s much better to be sat at the table when regulations are set and have a hand in their creation, rather than simply having to accept them.”
Suppliers have also come out in favour of staying in the EU.
Nigel Stein, chief executive of auto-components supplier GKN, said: “As a leading UK listed Tier 1 supplier in the automotive industry, we serve the global car manufacturers invested in Europe.
“As such we see a real benefit in remaining in the EU. A vote to leave will not mean manufacturing investment disappears overnight, but over time a UK outside the EU will be disadvantaged and will lose the investment it needs to maintain our industries.”
Mike Hawes, SMMT chief executive, said the message from the UK automotive industry was clear.
“Being in Europe is vital for the future of this industry and to secure jobs, investment and growth. UK Automotive is thriving, with record car exports, new registrations and the highest manufacturing levels for a decade,” he said.
“Our industry supports 800,000 jobs across the UK and contributes more than £15bn to the UK economy – our members have clearly stated that pulling out of Europe could jeopardise this.”
