We won’t let the wheels come off the car industry
HIGH-TECH firms supplying car makers in the automotive heartland of North-East England are optimistic about their prospects in spite of last month’s shock Brexit result.
The region voted strongly to quit the European Union despite being home to some of the country’s biggest car makers such as Nissan, a huge exporter to the EU. It has been suggested that Nissan may move out of Britain if Prime Minister Theresa May fails to secure a decent trade agreement with the EU.
But at a meeting of the North East Automotive Alliance, a group representing more than 160 members with a combined turnover of £9.5billion, members were sanguine in response to the result of the ballot.
‘We had a meeting of more than two hours shortly after the referendum and Brexit took less than three minutes of our time. We are manufacturers. We are businessmen and we’ve just got to get on with it,’ said Stephen Irish, chief executive of Hyperdrive Innovation.
The Sunderland-based company makes lithium batteries that can operate autonomously if needed.
Founded four years ago, it has just formed a multi-million pound partnership with Nissan to produce batteries for third parties, such as other car marques, driverless vehicles, industrial vehicles and even homes. ‘We’re a highly technical company and we’re growing very fast because we make something that everyone wants. Of course, Brexit will affect us but the UK has a reputation for innovation. We have the best engineers and the best universities, so I am optimistic,’ said Irish.
Dave Cann, UK general manager of French-owned car parts maker Mecaplast, echoed his confidence.
‘The UK makes good cars and it will carry on making good cars. That’s what matters, so I’m upbeat. It’s business as usual for us and our turnover is growing,’ he said.
Nonetheless, businesses in the region are concerned about their long-term future, particularly if there is a period of protracted uncertainty about trade negotiations and the ability to hire employees from the EU.
Paul Butler, chief executive of the North East Automotive Alliance, said: ‘The Government really needs to provide clarity about the future. Our members find the prospect of prolonged uncertainty quite frightening.’
Meanwhile, Matt Boyle, chief executive of Sevcon, a US-listed company headquartered in Gateshead, said: ‘We can’t plan because we don’t know what kind of agreement we will end up with, so we have to make decisions based on not knowing.’
A survey of the alliance’s members, conducted last week, highlights car suppliers’ fears.
Three in four worry that Brexit will hit companies’ access to the EU market and have a negative effect on inward investment.
Half worry about their ability to hire from the EU. However, one in three believe they will be more competitive following the Brexit vote.