The UK Automotive Industry and the EU

The UK Automotive Industry and the EU

This independent report identifies some of the key aspects of the UK’s membership of the EU and how it affects the UK automotive sector


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The UK Automotive Industry and the EU

An economic assessment of the interaction of the UK's Automotive Industry with the European Union.

The automotive industry believes the UK must maintain a strong voice in Europe. This independent report examines the economic relationship between the UK automotive industry and the EU.  

It shows just how important the EU is to the UK automotive market – the automotive industry is highly globalised and integrated within the EU.

The report identifies some key aspects of the UK’s membership of the EU and how they affect the UK automotive sector. Specific areas cover investment, growth and job creation and include:  

  • The attractiveness of the UK as a place to invest, and the competitiveness of the domestic automotive industry, is enhanced by the UK's membership of the EU. 
  • Access to the single market is fundamental to UK vehicle manufacturing, supporting sales and facilitating supply chain growth.
  • EU bargaining power in trade negotiations is vital for improving access to international growth markets.
  • In shaping regulations and standards, the UK needs a powerful voice at European level discussions. This ensures the UK industry’s specific needs are met, safeguards competitiveness and supports the diverse nature of the UK industry.
  • EU funding has boosted research and development (R&D) plus innovation at businesses and universities in the UK.
  • Free movement of labour enables UK manufacturers and suppliers to blend domestic and international talent.
  • Reform is still needed to remove difficult EU regulations and reduce complexities which can undermine international competitiveness. 

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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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