Brexit: what happens to our car industry?
It’s too early to make predictions of doom and gloom, and only the long and tedious process of negotiation will in the end tell the real story.
At this point, the prospects don’t look great. The pound has gone deep sea diving, and no major car company is talking about future investment plans in Britain…for now. BMW (who own Mini and Rolls-Royce), the Volkswagen group (Bentley), the Indian Company Tata (Jaguar and Land Rover), Nissan (with a big manufacturing investment in the UK), and of course Ford and Vauxhall all have massive stakes in achieving commercial and trade agreements fitting their global market status and all are saying ‘business as usual’…for now.
It’s worrying of course, the global car industry is booming, currently one of the biggest growth industries in the UK, and the world. The industry needs both skilled and increasingly more specialised personnel to take on new challenges and opportunities.
If we end up getting into tariff wars with Europe it’ll be a hell of a lot more expensive to buy a new European car, even with a stronger pound. Brexit means car companies have many new problems to face. Nissan, for example, build not far off half a million cars in the UK and export most of them abroad. Successful Brexit negotiations will prove critical to sustaining the thousands of new jobs in Britain Nissan have created.
So what of the future? What will happen to British jobs? Some researchers are predicting billions in losses to the UK motor industry. The truth is it is genuinely too early to say. Negotiations need to take their course. Her Majesty’s advice is to keep calm; we suggest that’s probably the best advice for now. Panic doesn’t achieve sound results.