Rugby MP warns hard Brexit could be 'disastrous' for region's car manufacturing - The Rugby Observer

Rugby MP warns hard Brexit could be 'disastrous' for region's car manufacturing

Andy Morris 2nd Mar, 2018   0

MOTOR manufacturing in Rugby and Coventry could suffer under a hard or no-deal Brexit, Rugby’s MP has warned.

Mark Pawsey has backed a report by the Business, Energy and Industrial Strategy (BEIS) Select Committee in Parliament – of which he is a member – urging the Government to secure the best possible deal for the UK’s automotive sector as part of the UK’s exit from the EU.

The report argues that a ‘no-deal’ scenario could risk thousands of jobs across the UK and threaten the growth of the automotive sector which has been a major success story for the West Midlands in recent years.

Mr Pawsey fears such a scenario could risk the manufacturing resurgence which has seen the London Electric Vehicle Company build the new electric London Taxi at Ansty in the Rugby constituency, and Jaguar Land Rover invest in their new generation of vehicles in neighbouring Coventry.




With 80 per cent of cars built in the UK exported – of which over half are exported to the EU – the committee fears tariff barriers under World Trade Organisation rules could have disastrous consequences for UK car manufacturers.

The committee recommends the Government places a strong emphasis on securing frictionless trade for the automotive industry during Brexit negotiations, to preserve the integrated nature of the automotive supply chain – with components for cars built in the UK regularly crossing the channel a number of times during the assembly process.


Mr Pawsey said: “Across the industry there are real concerns about the impact of leaving the EU on World Trade Organisation tariffs for jobs in the UK. Frictionless trade between the UK and the EU has been important to the success of the motor industry.”

He said the report found it unrealistic to expect an expansion of trade overseas to outweigh the loss of trade to Europe arising from a hard Brexit.

He added: “It is vital for the security of manufacturing jobs and growth that the Government aims to retain regulatory alignment with the EU regulatory framework for the short to medium term.

“On Rugby’s doorstep in Coventry, there is a heritage in motor manufacturing which continues to this day thanks to the investment by Jaguar Land Rover in their new generation of vehicles.

“This is alongside the investment by the London Electric Vehicle Company at Ansty in the Rugby constituency to build the new electric London Taxi. The challenges to the industry of leaving the EU without a deal would risk the resurgence we have seen in recent years.”

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