Jobs and inward investment in UK car industry threatened by ‘no-deal’, say MPs

A NO-DEAL Brexit threatens hundreds of thousands of job losses in the UK car industry and hundreds of millions of pounds in inward investment, the Government is being warned.

MPs said if volume car manufacturing had a realistic chance of survival post-Brexit, it would be essential to keep a close relationship with the existing EU regulatory and trading framework.

The Business Select Committee called on ministers to place a high premium on securing frictionless trade for the automotive sector.

Its report said it was unrealistic to expect an expansion of trade overseas to outweigh the loss of business to Europe from a hard Brexit.

Retaining good access to the single market is more important than having the freedom to make new trade deals with other countries, said the report.

Leeds West MP Rachel Reeves, who chairs the committee, said: “The car industry is one of the UK’s great manufacturing successes. Innovative and efficient car plants across the country provide thousands of jobs and the automotive sector is a major contributor to our economic growth.

“There is no credible argument to suggest there are advantages to be gained from Brexit for the UK car industry.

“Regulatory consistency and friction-free trade benefits car companies, consumers and carworkers.

“The Prime Minister now needs to ensure common-sense pragmatism prevails and spell out the Government’s intention to seek continued regulatory and trading alignment with the EU in the automotive sector.”

Toyota is to build a new version of its Auris car in the UK, the Japanese firm has announced.

The model will be produced at the Burnaston plant in Derbyshire, with engines sourced mainly from Toyota’s Deeside factory in North Wales.

The move follows £240m of investment last year to upgrade the Burnaston site, including £20m from the Government.