According to the SMMT, a new survey shows that 1 in 3 UK automotive companies have cut jobs to prepare for a ‘no deal’ Brexit, and 80.3% are concerned of their future business prospects.
- 11% of firms said that they had already divested from their UK-based operations.
- 4% are relocating operations overseas.
- Overall, 77.2% of firms say that there has already been a negative impact on business even before the UK has left the EU.
Mike Hawes, SMMT Chief Executive, said: “As the Brexit clock ticks ever closer to midnight, this survey reveals the bleak future that awaits this vital sector in the event of ‘no deal’. Damage has already been done: investment is haemorrhaging, competitiveness being undermined, UK jobs cut and vast sums wasted on the impossibility of preparing for ‘no deal’. Make no mistake, every day ‘no deal’ remains a possibility is another day of lost investment, another day that makes it harder to recover investor confidence in the UK. As yet, the damage is not irreversible. But we need a deal. A deal that, in the short term, enables a “business as usual” transition for as long as it takes to negotiate and implement the future trading relationship. In the longer term, that deal must replicate all of the benefits we currently enjoy which means an ambitious deal that delivers free and frictionless trade. UK jobs, innovation, trading strength and economic growth all depend on the automotive sector so we urge all parties to get a good deal done before it is too late.”
For more information, head over to SMMT.