John Leech, Head of Automotive at KPMG in the UK, highlights concerns from UK automotive market in the event of Brexit. He said:
“Our report with the SMMT shows just how important the EU is to the UK automotive market – the UK automotive sector would likely lose sales, face slower supply chains and higher costs in the event of a Brexit. Given the low levels of profitability that accrue to mass market vehicle manufacture this would likely, over time, to lead to the loss of jobs overall. Even for the UK’s successful premium car manufacturers the loss of influence over EU regulation would come to damage their businesses over time.
“The automotive businesses we spoke to believe that the EU as an important bargaining force in global trade negotiations. Moreover, research and development, which is vital to the UK’s ability to be at the forefront of innovation in car manufacturing, is both heavily funded by the EU and requires access to the expertise and free movement of skilled engineers within the EU.
“While our report outlines the importance of EU membership to the UK automotive industry, it also poses some challenges to the sector. There is a clear demand for consistent application of regulation and reduced red tape."
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Notes to Editors:
About KPMGKPMG 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.