UK car industry says EU membership vital to its success
Originally published by East Midlands Liberal Democrats
Europe is fundamental to the success of the British car manufacturing according to a new report published today by the SMMT, a body which represents the UK automotive industry, and KPMG.
The report found that over 80% of cars produced in Toyota's factory near Derby are sold in continental Europe.
"The UK's membership of the EU has always been an important consideration for Toyota, from our original decision to invest here and indeed to this day," Toyota said in a statement. "Like a lot of international investors in this country, open access to the European Single Market has been and remains crucial to our business success."
In total 92% of automotive companies surveyed said it was more beneficial to their business for the UK to stay in the EU.
The reasons cited in the report include the fact that the EU is the car industry's biggest export market, sets the global rulebook when it comes to standards for car manufacturing and plays a vital role in opening up new markets overseas in countries like India and China.
Business Secretary Vince Cable commented:
"Manufacturer after manufacturer - Nissan, Honda, BMW, Ford - have publicly asserted the advantages of EU membership and underscored the message that the car industry cannot operate in isolation. The UK is part of the European market and our companies source more of their parts from the rest of the EU than they do from within the UK itself."
"The EU is a global standard setter for rules and regulations, covering all aspects of the industry from car emissions to safety. If we left, our companies would still have to conform to EU standards but would have no say in how they are drafted. There would be no British voice at the table fighting the corner for British interests."
Bill Newton Dunn, Liberal Democrat MEP for the East Midlands commented:
"This report underlines just how important being in the EU is for the car industry in the East Midlands.
"Liberal Democrats are fighting to keep Britain in Europe because being in is vital for jobs, investment and our economic future.
"We cannot let UKIP and Tory eurosceptics throw the economic recovery away by pulling Britain out of the world's largest economy.
"That is why Nick Clegg is taking on Nigel Farage, and it is why Lib Dems are going into the European elections as the only party clearly making the case for our continued EU membership."
In his closing remarks to the report, John Leech UK Head of Automotive at KPMG comments:
"On balance, the position of the UK automotive industry is clear - continued EU membership is vital to this £60 billion industry and its long-term prosperity."
The report states that:
"Over 70% of the total number of Nissan cars sold in Europe (excluding UK) came from the Sunderland plant. A similar proportion of production destined for the EU market can be seen at Honda, Toyota and Vauxhall."
"Sales to emerging markets are growing. UK automotive exports to China, for example, have increased more than six fold between 2008 and 2013. This has led to some arguments that the UK government should focus on the emerging economies rather than the EU for future trading links. However, for volume manufacturers in the UK such as Honda, Nissan, Toyota, and Vauxhall, the majority of exports are to the rest of the EU. For premium manufacturers such as BMW Group and Jaguar Land Rover, approximately 40% of their vehicles are sold within the EU with the rest sold in non-EU markets. The EU market, therefore, will remain key for UK automotive manufacturers."