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North East Automotive Industry Warns Of Need To Stay In Single Market

Thursday, Jun 30, 2016

Leaders of the automotive industry - which provides tens of thousands of jobs in the North East - have spoken of the “crucial” importance of the single market after European exports helped the sector to a hugely successful year.

Vehicle production topped 1.7m last year, with almost four out of five cars built for export, 57.5% of which went to the EU.

The automotive plant is one of the region’s key employers, with Nissan’s Sunderland plant having around 6,700 staff and more than 30,000 jobs in the supply sector.

The industry nationwide had a turnover of more than £71bn in 2015, up by 7.3% on the previous year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Chief executive Mike Hawes said: “UK automotive has gone from strength to strength, and is now delivering record turnover, record productivity and more jobs.

“These strong results go hand in hand with a steadfast commitment to improving our environmental performance, which is clearly demonstrated through reductions in CO2, waste and water use.

“This success has been due to unrestricted access to the single market, input to EU legislation to safeguard the interests of UK automotive, and the ability to recruit talent from abroad.

“Our growth depends on certainty and continued open and reciprocal access to the 100-plus markets with which the UK automotive industry so successfully trades.

“This is not just finished cars but components, technologies and the wider automotive value chain. Any risks and uncertainty to these fundamental benefits need to be addressed head on by UK Government.”

Mr Hawes said the car industry was “deeply integrated” with Europe, which he described as its single most important international relationship.

The SMMT supported remaining in the EU, and the industry now faces new challenges amid uncertainty and economic instability, he said.

The North East Automotive Alliance, which represents companys in the sector in the North East, is due to meet next week to discuss the impact of Brexit.

Its chief executive Paul Butler said: “We surveyed our members before the referendum and 92% believed the best result would be to remain. 91% also felt that exiting would have a negative impact on inward foreign investment.”

 Tony Burke, assistant general secretary of Unite, said the car industry had to be safeguarded after Brexit , adding: “The UK exports excellent cars to more than 100 countries; we have a skilled and flexible workforce and we have a shared determination to see this crucial industry is safeguarded.”

The SMMT revealed there are an estimated 5,000 vacancies across the motor industry amid a continued skills shortage.

Car manufacturing is already up by 10% so far this year, while companies in the supply chain plan to invest £225m in new jobs, machinery and product development in the next three years.

 

Source : chroniclelive.co.uk

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