This content is out of date and scheduled to be removed.

We need the single market, says SMMT after record-breaking year

Image of James Kelly
Author: | Updated: 29 Jun 2016 10:44

Coming days after the UK voted to leave the European Union, the Society of Motor Manufacturers and Traders (SMMT) has claimed that access to the single market and trade deals with Europe have been a key factor behind the success of the UK car industry.

It has revealed that 2015 was a record-breaking year for the automotive manufacturing sector, with the SMMT’s 17th annual sustainability report showing turnover in 2015 was £71.6bn – a 7.3% increase on 2014.

Employees working on the assembly-line at BMW Mini's plant in Coventry

Commenting on the report, Mike Hawes, SMMT chief executive, said: “UK automotive has gone from strength to strength, and is now delivering record turnover, record productivity and more jobs. These strong results go hand in hand with a steadfast commitment to improving our environmental performance, which is clearly demonstrated through reductions in CO2, waste and water use.”

Production up, pollution down

Despite growth, the report shows that environmental impact and C02 emissions have decreased, with the industry sending 41% less waste to landfill than the previous year. Average C02 emissions of new cars are now 33% less than those produced in 2000 too, with 2015 seeing a 2.6% decrease overall.

Industry leaders are keen to point out that this significant growth is in part thanks to access to the single-market economy, trade deals with Europe and the ability to recruit internationally. In the wake of Brexit, this is surely a hint to the government that any future deals it makes must not damage the industry’s prospects.

Crewe-based Bentley production is up thanks to the new Bentayga SUV

Does Brexit have implications for the UK’s automotive sector?

Hawes added: “This success has been due to unrestricted access to the single market, input to EU legislation to safeguard the interests of UK automotive, and the ability to recruit talent from abroad. Our growth depends on certainty and continued open and reciprocal access to the 100-plus markets with which the UK automotive industry so successfully trades”

The report suggests that growth has continued well into 2016, with an overall increase in production of 10% so far this year. It isn’t just the manufacturing industry that’s growing – the report shows British motorists are spending more than ever before looking after their cars, with £21.1bn generated for the economy by parts suppliers and garages, too.

Previous Post Next Post
Not sure what car you want?
  • Easy-to-use tool
  • Save time and money
  • Meet your match
Find your dream car