# 39; # 39 Brexit; Eye of a car manufacturer
Leasing business case by Cameron Clarke Leasing Limited.
The vast majority of car manufacturers based in the UK voted in favor of the UK remaining in the EU Basically, the EU is still primarily a trading bloc and being inside, it makes sense for financial and regulatory reasons.
Our preference is that the UK remains in Europe; a position of stability is more positive than a collection of unknowns Carlos Ghosn - CEO of Nissan.
Regarding finances go, the EU countries are the largest export market for cars built in the UK There can be a lot of discussion on emerging markets such as China and Russia, and they do not hold much appeal in the longer term, but they account for only a small proportion of cars exported from these shores.
In total, the UK exported 77 3 of its automobile production in 2015, which is 1 23 million vehicles, and the vast majority have been sold to other EU Member States.
If the UK should leave the EU after the referendum, scheduled for Thursday, June 23 it seems certain that the price of British-made cars on the other side of the Channel increase.
This is partly down to the United Kingdom agreements losing free trade that we enjoy as a member of the EU and also that EU countries would then be free to charge import duties product in the UK.
Another factor in the increase in car costs for vehicles manufactured in the UK would be the price we pay to import components for our EU missing friends Many critical components used in cars built in the UK come from France , Germany, Spain and many others that you not necessarily associate with automobile production, such as Slovakia and Turkey.
If the British car manufacturers have to pay more for their cars because of the loss of free trade and protection of higher prices in the EU offer, the cost will be passed on to the consumer this means a higher list price and, almost inevitably, a steeper rental cost.
This is not alarmist, it is the bald truth of a situation where the United Kingdom decides to leave the EU.
Another effect of this could be the car manufacturers based outside the United Kingdom more expensive within our domestic automakers borders may request Take advantage of the British government to protect them against production costs increased and this could include a protectionist attitude to non-UK car makes it less attractive to UK consumers.
What if the British car industry isn t all it's cracked up to be.
Car production in the UK would not be in free fall or stop Toyota has already said it will continue to make cars in the UK regardless of whether or not Brexit happens.
Those campaigning to keep the UK in the EU could interpret this as a blow to their campaign, but it is more to do with Toyota being a pragmatic society.
Many in the auto industry in the UK want the vote of the road as quickly as possible so they can get with the management of their businesses.
This pragmatism comes carmakers must plan five or even 10 years down the line.
While Toyota may consider a Brexit as less worrisome than some, the potential referendum and vote to leave the EU still has a lot of people within the British car industry with a headache after all, how can you plan so far when you do t how the level or tilted the playing field will be.
Many of the largest car dealer groups in the UK, which are responsible for a significant number of rental offers we finance our cars with, are nervous when those people are nervous, it sends ripples through the industry in general.
Several people with dealer groups we spoke to said it is uncertain as long as the result is causing sleepless nights.
At least when the result of the referendum is known, they can plan and as someone told us Our dealers need stability to function successfully and we also know what it costs vehicle so we can offer the best deal to our customers that they are retail, leasing or business users.
At present, we have the worst situation of uncertainty about the outcome of this debate and even when this issue is resolved.
The five cars built in Britain, you can hire now.
Britain's automotive manufacturing sector is 69 5 billion a year to the economy, so that all that could knock off course is considered at length.
Toyota has said it may continue building cars in the UK, but comments Nissan boss Carlos Ghosn leave big question marks about whether its Sunderland plant, which builds the sheet and Qashqai Pulsar remain viable following a Brexit.
Our preference, as a business, is that the UK remains in Europe, he wrote in a statement.
It is most logical for jobs, trade and costs to us, a position of stability is more positive than a collection of unknowns.
He acknowledged that it would be the British people to decide and wouldn t be explicitly established on what would happen if the United Kingdom did leave the EU.
One positive is here in the UK is a great place to build cars Even when the pound is strong against the euro and other currencies, the attractiveness of cars in Colombia is sufficient to maintain the dynamic sales.
However, there is also the regulatory element to consider Currently, as a member of the EU, the UK has a say in the standards of cars should be tested, security to emissions reliability.
If the UK leaving the EU, we lose this important voice in decision-regulation and law Although it is unlikely a car made by British manufacturer outside the EU fail these standards, it might be these standards are not high enough the United Kingdom has been a strong leader by moving the top bar for safety, quality standards and the environment.
Many in the auto industry in the UK want the vote of the road as quickly as possible so they can get with running their businesses, whether with a future inside or outside of 'European Union.
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