Britain's EU membership is 'critical for future success', says automotive industry
2 min read
02 April 2014
The attractiveness of the UK as an investment destination and the competitiveness of the domestic automotive industry is enhanced by Britain's EU membership, according to new report.
The Society of Motor Manufacturers and Traders (SMMT) report produced by KPMG showed that 92 per cent of automotive companies believe that staying in the EU would be best for business with majority seeking a reform agenda.
Moreover, almost 70 per cent believe a withdrawal from Europe would have a negative impact on their business in the medium to long term.
Mike Hawes, SMMT chief executive, said: “The position of the UK automotive industry is clear – being part of a strong Europe is critical for future success.
“This report, and our member survey, shows that Britain’s EU membership is fundamental to investment, growth and jobs in automotive companies of all sizes.”
John Leech, head of automotive at KPMG in the UK, added: “Our analysis shows that, for the automotive industry, it is not a question of the EU versus emerging markets; they want to do business with both.”
In addition to the report conducted by KPMG, a survey of SMMT members showed that 92 per cent of automotive companies believe staying in the EU would be best for their businesses.
Key findings of the KPMG report:
- Access to the Single Market is fundamental to UK vehicle manufacturing, supporting sales and supply chain growth;
- EU bargaining power in trade negotiations is critical;
- In shaping regulations and standards, the UK needs a powerful voice at European level;
- EU funding has boosted R&D;
- Free movement of labour enables UK manufacturers and suppliers to blend domestic and international talent; and
- Reforms is still needed to remove ‘burdensome’ EU regulations.