Rugby’s MP, Mark Pawsey, is a member of the Business, Energy and Industrial Strategy (BEIS) Select Committee in Parliament, which has today issued a report urging the Government to secure the best possible deal for the UK’s automotive sector as part of the Brexit negotiations.
Having taken evidence from manufacturers, components suppliers and workers in the sector, Mark is backing the committee’s report, The impact of Brexit on the automotive sector. The report argues that a “no-deal” scenario between the UK and the EU could risk thousands of jobs across the UK and threaten the growth of the automotive sector, which has been a major success story for the West Midlands in recent years. 80% of cars built in the UK are exported, of which over half are exported to the European Union. It is feared that tariff barriers under World Trade Organisation rules could have disastrous consequences for car manufacturers both in the UK and in the EU.
Among the key concerns identified by the report is the integrated nature of the automotive supply chain, with components for cars built in the UK regularly crossing the channel a number of times during the assembly process. As a consequence, the BEIS Select Committee’s report recommends that the Government places a strong emphasis on securing frictionless trade for the automotive industry during the Brexit negotiations.
Speaking as the committee’s report was published, Mark commented:
“As a member of the Business, Energy and Industrial Strategy Select Committee, I have heard a significant amount of evidence from key players in the automotive industry on the consequences of Brexit for the sector. It is clear that across the industry there are real concerns about the impact of leaving the EU on World Trade Organisation tariffs for jobs in the UK. During a recent visit to Honda’s factory in Swindon it was made clear to members of the committee how important frictionless trade between the UK and the EU has been to the success of the motor industry.”
Mark continued:
“Our committee’s report finds it unrealistic to expect an expansion of trade overseas to outweigh the loss of trade to Europe arising from a hard Brexit. As such, it is vital for the security of manufacturing jobs and growth that the Government aims to retain regulatory alignment with the EU regulatory framework for the short to medium term. On Rugby’s doorstep in Coventry, there is a heritage in motor manufacturing which continues to this day thanks to the investment by Jaguar Land Rover in their new generation of vehicles. This is alongside the investment by the London Electric Vehicle Company at Ansty in the Rugby constituency to build the new electric London Taxi. The challenges to the industry of leaving the EU without a deal would risk the resurgence we have seen in recent years.”
Mark added:
“The news this week that Toyota will build the next generation of Auris hatchbacks at their factory in Derbyshire is very positive and shows the confidence that car manufacturers have in the resilience of the UK’s economy. It is important that the deal the Government negotiates with the EU as we leave will enable other manufacturers to follow Toyota’s lead in their investment decisions.”