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The UK voted Leave: What does this mean for motorists?Back

LeaveToday marks a historical day in British history with the UK voting in favour of leaving the European Union.

In a period of economic uncertainty, Trusted Dealers takes a look at how Brexit could affect the future of British motorists.

There’s no doubt that global manufacturers who produce cars within the UK are going to be disappointed with the decision to Brexit. Manufacturers such as Toyota this week, have voiced the opinion that if the UK leaves the EU it may, “seriously affect the current trading arrangements.” Nissan, Vauxhall, BMW and Jaguar Land Rover also voiced their support for the Remain campaign.

Motorists may now have to pay duty as high as 10 per cent on cars which could lead to huge losses for manufacturers, or an increase in the cost of cars for buyers.

The Society of Motoring Manufacturers and Traders also supported the Remain campaign, with 77 per cent of member companies voting in favour of remaining in the EU back in March 2016.

The SMMT cited that Brexit could jeopardise current jobs and investment success and restated its view that staying in the EU is “best for business and best for British jobs.” The motoring industry has created no less than 800,000 jobs across the UK with eighty per cent of cars built exported to Europe, contributing to £15.5 billion a year annually to the British economy.

In light of today’s results, it seems that the appeals from motoring manufacturers may have fallen on deaf ears, with Leave taking the lead with 61 per cent of the vote in Sunderland – an area where approximately 7,000 people are employed directly by Nissan, who have strongly backed remaining in the EU. Furthermore, the population of Derby also voted Brexit – home to Toyota’s UK factory which provides 4,000 jobs, and Solihull, home of Land Rover.

A selection of EU motoring bodies have been quick to react. Mike Hawes, SMMT Chief Executive, said: “The British public has chosen a new future out of Europe. Government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests. This includes securing tariff-free access to European and other global markets, ensuring we can recruit talent from the EU and the rest of the world and making the UK the most competitive place in Europe for automotive investment.”

Nobody knows what will happen just yet, but in order for the UK to leave the EU, Article 50 must be implemented to begin our exit from Europe and this process takes two years. So we are unlikely to see significant changes until 2018/2019.

For more information on what Brexit could mean for the future of motorists, click here.


Posted by Leana Kell on 24/06/2016