John Leech, head of automotive at KPMG UK, reacts to the Brexit outcome in the EU referendum. He said:
“The British public has voted to Leave the EU. As recent surveys showed, the automotive industry is anticipated to be one of the sectors most impacted by the vote to Leave the EU. While it will take years for the UK’s future relationship with the EU and other countries to become clear, there are steps that the Automotive Industry should take now. The fall in Sterling and commodity prices will prompt vehicle production plans, sales incentives, financing arrangements and purchasing plans to be adjusted. Information about employees, procurement and distribution needs to be gathered and reassessed such that quick action can be taken once the anticipated changes to VAT, customs and migration rules are enacted.
“In recent months we have seen some industry commentators believe that UK new car sales could top 3 million in the coming years. The vote to leave the EU means that this has become highly unlikely and I now forecast that new car sales will fall to 2.5m cars in 2017. I still anticipate that UK car production will grow by double digits in 2016 to 1.7 million cars driven principally by EU exports buoyed by the weak pound.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.