The United Kingdom is taking steps to secure its automotive manufacturing future, according to AutoCar. Specifically, the government moved quickly when the largest producer of vehicles in the UK, Nissan, stated it could not wait until a British exit, or “Brexit”, deal was entirely worked out.
Nissan chief Carlos Ghosn commented during the 2016 Paris Motor Show stating, “If I need to make an investment in the next few months and I can’t wait until the end of Brexit, then I have to make a deal with the UK government.” Following his comments, business secretary Greg Clark reassured automakers such as Nissan and Vauxhall.
“It is my job to provide the assurances to Nissan and others that Britain is going to continue to be a great place to invest. I was able to do that and this [Nissan’s continuing investment] was the result that we saw.”
“One of the assurances I was able to give is that our intention, our negotiating remit when it comes to the discussions with our European partners is to have a constructive and civilized dialogue to look for the common interest here,” he added.
The UK will levy zero tariffs on automakers exporting cars into the European Union, which is excellent news for Vauxhall’s Ellesmere Plant; the facility was rumored to shut down in the wake of uncompetitiveness.
However, it hasn’t stopped rising new car prices. Vauxhall raised prices on new vehicles by 2.5 percent to combat the fluctuating pound sterling.