Britain votes to leave the EU after Brexit referendum result ~ station of gear

UK automotive industry faces uncertain future following Brexit

2016-06-24 10:06

The UK automotive industry faces an uncertain future after Britain voted 'Out' in the EU Referendum.

Results revealed 51.9 per cent of Brits voted to leave on June 23 with more than 17 million voters backing a Brexit. The outcome prompted David Cameron to resign as Prime Minister.

And car manufacturers with UK factories like Nissan, BMW, Jaguar Land Rover and Toyota which had strongly backed the Remain campaign now face a waiting game on what financial and trade agreements are put in place in a post-EU Britain.

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.”

• How will the EU referendum affect motorists?

Motor insurance policies are also governed by many EU laws and the British Insurance Brokers' Association has recognised the difficulties that lie ahead.

A spokesman said: "This is an unprecedented situation for the UK and BIBA is conscious that this will create a considerable amount of work and concern amongst members and their customers.

"The process of negotiating exit terms, setting out future arrangements with the EU and creating trading deals is likely to take some considerable time and will impact our industry during that period.

• 'In or Out of the EU - it'll make no difference to motorists'

"BIBA will work with the Government and other authorities to ensure that the interests of insurance brokers and their customers are fully represented in these vital negotiations. BIBA will make this a priority work stream during this time."

It's likely it'll be 2018 before the UK has formally left the EU with the Government required to activate Article 50 of the 2009 Lisbon Treaty. This then kick-starts a two-year negotiation period.

In the shorter term, the falling pound - which lost 10 per cent of its value in the hours following the vote - means the price of petrol and diesel could rise.

What do you think of the result? Leave us a comment below...

Joe Finnerty

Thank you for reading the article about Britain votes to leave the EU after Brexit referendum result in blog station of gear If this article was helpful please bookmark this page in your web browser by pressing Ctrl + D on your keyboard keys.