The UK’s exit from the EU has left the nation’s car industry in “damage limitation” mode, a representative from the UK’s motoring trade body has said.
It came as voices from carmakers Honda Europe and Jaguar Land Rover (JLR) called for the UK and EU to focus on the “problems immediately in front of us” on regulatory alignment, and highlighted that “there can only be value in continuing to deepen” UK-EU ties.
Giving evidence to the UK Trade and Business Commission (UKTBC) in a live evidence session on the Made in Europe agenda, Alessandro Marongiu, head of trade policy at the Society of Motor Manufacturers and Traders (SMMT), stressed that “the sector has always been very consistent about Brexit: Brexit for us is about damage limitation”.
His comments were echoed by carmaker Honda Europe, with Patrick Keating, head of external affairs, stating: “We’ve always supported the UK maintaining as close a relationship as possible with the EU, both on a trade policy basis but also on a regulatory basis as well.” He added: “For us, Europe remains essentially one region. The steering wheel may be on the other side of the vehicle but essentially everything else is the same.”
Asked what the SMMT was hoping for from the long-term UK-EU relationship, ahead of the next UK-EU summit, which is now confirmed to be held on Friday, November 20th, Marongiu stated: “Automotive needs a stable, ambitious and practical UK-EU automotive relationship that treats our industries as part of a shared production ecosystem.” He also noted that the SMMT would “need to have an option to consult broadly with our members if we are asked about potential future options” for the UK-EU relationship.
Edward Gibbs, head of UK government relations at Jaguar Land Rover, told the UKTBC that: “What we cannot get past is the need to deal with issues such as rules of origin under the TCA [Trade and Co-operation Agreement]. We cannot move to a longer-term discussion until we’ve dealt with that issue.”
Gibbs added he would “really encourage the PM and governments across Europe to seriously and meaningfully engage with that question to land on a settlement that works for industry on both sides of the channel”. He continued: “The commission would struggle to find a witness from any automotive business, either in the UK or across the EU27, that would say the current rules of origin framework is sensible and workable. I would really encourage governments in London and Brussels to focus on problems immediately in front of us as well as thinking about the long-term.”
And Keating also endorsed closer ties for the UK with Europe, highlighting to the Commission: “Our view would be that we very much appreciate continuing that regulatory alignment.” He stressed: “We would support an ever-closer relationship… there can only be value in continuing to deepen that relationship."
It comes as Prime Minister Andy Burnham told the House of Commons that the EU’s Made in Europe agenda “does present risks to British manufacturing” and that he was raising concerns, including about the “automotive industry in the West Midlands” with European partners.
Burnham stressed: “It is important that we get to an arrangement here that works for both the UK and the EU. After all we are both trying to deal with the same issue which is Chinese exports and the damaging effect that's having on our industry. So the way to approach this is to do it together, and that's the case that we're making to the EU."
