BREXIT will kill British car industry

11 March 2019

ACEA warns that half of car production in the UK under the threat of EU sanctions due to the lack of agreement on BREXIT

Analysts ACEA unequivocally warn that the absence of a Treaty with the EU Brexit would be a disaster for the automotive industry in the UK. There is no other industry which would be more closely integrated than the European automotive industry, with a very complex supply chain stretching across Europe, and production, based on timely delivery.

Indeed, as shows this newsletter, automotive industry, EU and UK today are closely intertwined.
• So, 50,7% of all exported vehicles of British manufacture (€34.1 billion) last year, has been bought by clients in the European Union. Of these, a total of 25% are Belgium, Germany and Spain.
• In fact, more than 8 out of 10 cars produced in Britain are exported.
• Almost 4 cars out of 10 cars manufactured in the 27 continental EU countries (EU-27) or exported 5.6 million (38.3 per cent), with approximately one-third (12.4% or of the total production) total exports go to the UK.

• From the EU is 85% of the import volume (671,6 thousand) cars in the UK.
• The UK imports 79.7% of components from EU-27, respectively, 16.3% of export of components from EU-27 accounts for the United Kingdom.
• Exports of components from Britain is 60% (€9.2 billion) from their production in the country.

  In continental Europe are more than 300 enterprises producing car components and car Assembly plants. A total of 13.3 million people in the EU are employed in the automotive industry, which is 6.1% of total employment. This sector of the economy generates 6.8% of the total GDP of the entire European Union. About 3.4 million people employed directly or indirectly in the automotive sector accounts for 11.3% of employment in the manufacturing industry in the EU.
In the UK there are 30 companies of the automotive industry, including engines and cars. In the automotive sector employs 856 thousand, which generate £20.2 billion of the surplus value in the UK economy. At least 10% of workers in the UK are employed in the automotive sector.