Wednesday 12 July 2017

Brexit Thoughts #1: Cars




 
The EU is by far the UK's biggest car export market, with more than half of all finished cars bought by the EU. This is four times as large as the next biggest market. UK car manufacturing generated £77.5 billion of turnover last year and accounted for 12% of the total goods exported from the UK.
 
Clearly the EU is a ‘big deal’ in car making and to the UK economy.
 
All of this is the by-product of the tariff / tax free movement of goods within the EU……can you now imagine the impact of increasing car production costs if there is a new EU import / export tariff?    
 
Then add in new regulatory red tape and new labour issues and it is clear there is much to be thrashed out during Brexit negotiations.
 
This is just one small area amongst the enormity of issues to be negotiated……but it is one small area that employs 1 million people in the UK.

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