The Importance of the EU to the Supply Chain

Which side of the EU debate is the automotive and supply chain industry?

How could the EU debate affect these industries?

It is important to look at where the automotive industry is currently and where it is heading in the future, then add the European Union to the question.

The UK is the second largest manufacturer in Europe this year behind Germany; this is a six year high and an interesting sign towards the future. This performance is down to number of great performances by a group of manufacturers.

 Jaguar Land Rover has been the main contributor with the new Range Rover and Jaguar range this is a manufacturer that is going to be 40k cars short of sales this year. The majority of JLR’s vehicles are exported, mainly to the emerging Asian markets which are an indication why they are building plants around the globe.

Nissan are another car manufacturer that has been a huge contributing factor in the UK success in the automotive sector with the new Micra and Qashqai being built in Sunderland. The factory is the most productive in Europe.

General Motors have ramped up production in the UK and closed down their plant in Germany. Toyata and BMW are also contributing with the large number of vehicles they are exporting from the UK. If that isn’t a big enough indicator of where the UK are going in the European pecking order then what is.

The majority of the vehicles coming off the production lines of manufacturers in the UK are being exported; therefore the industry needs a helping hand moving them off the island and onto mainland Europe or through European waters. If there is an exit then this task becomes harder and more expensive as the taxes and fees will be increased as the UK will no longer be part of the club.

Before we get to the exporting stage, the manufacturers need their parts delivered in order to make the car and then to sell it. Importing parts and logistics is a factor that involves European Union membership.

Whichever direction the UK automotive industry looks the European Union is going to involved in some shape or form and for the good and the bad.

With the future picking up for the manufacturers and supply chain they are going to need as much help as possible but on the flip side they need to safe guard against competition and sustainability.