In a report published by the Society of Motor Manufacturers and Traders (SMMT), analysis by Oxford Economics estimates that UK automotive production supports €24 billion of economic activity across the EU.
The findings come as EU talks on its Industrial Accelerator Act (IAA) highlight the importance of the UK to Europe’s vehicle markets and supply chain.
Mike Hawes, SMMT Chief Executive, said, “The EU and UK automotive sectors have traded, invested and grown together over many years. Despite Brexit, supply chains remain deeply integrated and the cross-Channel trading relationship is worth €80 billion a year, supporting jobs, growth and investment.
“The EU is rightly focused on strengthening its industrial base, but the UK remains fundamental to Europe’s automotive ecosystem and is therefore essential to that ambition. Excluding the UK from ‘Made in Europe’ would be an own goal, weakening competitiveness, reducing scale and limiting consumer choice.
“We need a better outcome – one that recognises UK Automotive as a trusted partner in the Industrial Accelerator Act and strengthens, rather than fragments, Europe’s automotive industry.”
UK automotive exports to the EU alone generate €5.6 billion of spending across the bloc, supporting 58,000 jobs and €1.6bn in tax revenues.
If the IAA excludes the UK from key ‘Made in Europe’ provisions, as drafted, UK-built vehicles would be denied access to incentives available to EU-built products.
This includes support for greener corporate fleets and CO2 super credits. The UK would also be excluded from EU Member State procurement.
The exposure would be felt across Europe’s major automotive economies, with the biggest GDP impacts in Germany, France, Italy and Spain – at around €6.3 billion, €2 billion, €1.7 billion and €1.5 billion respectively.
UK output currently supports thousands of jobs in each market, including 69, Germany 000 in, 24,000 in France, 22,000 in Spain and 20,000 in Italy.
The dependency is even more pronounced in Central and Eastern Europe as UK automotive production supports 23,000 jobs in Poland, 14,000 in Romania, 13,000 in Czechia and 11,000 in Slovakia.
