That economic significance has been thrown into stark relief by Brexit and concerns that overseas carmakers may reassess their manufacturing capabilities here. This week’s announced sale of Vauxhall/Opel by GM to France’s PSA Peugeot Citroën has added to mounting fears that many jobs may be at risk, while BMW is said to be wavering over whether it will manufacture its new electric Mini in the UK. Rumours persist that Nissan – which built over half a million cars in the UK last year at its 5,000-strong Sunderland plant – has been secretly offered government promises to secure its post-Brexit future.
It is true, of course, that all of the largest car plants are ultimately owned by overseas companies. But this fact is to miss the point of how embedded these overseas corporations are in UK industry. Ford, of course, was the earliest of them all, arriving in 1911 and rebadged Ford of Britain in 1960. Nissan’s involvement began in the mid-1980s, along with Honda and Toyota. The Mini, meanwhile, is as British a brand as there is, even if the new Mini that launched in 2000 after the collapse of British Leyland is by design an essentially German machine these days.
Symbolically the Mini is important, though, because, along with the likes of Jaguars and Land Rovers, it represents a continuation of the long and mostly distinguished history of carmaking in the UK. With the exception of Nissan’s greenfield factory, most foreign-owned plants are long-established factories – starting a brand new factory is a huge commitment, and existing facilities are rarely abandoned. Putting aside the fact that the UK is one of the world’s largest individual car markets, it is also home to considerable technical skills; while Ford may not assemble any vehicles here, it has significant R&D capabilities (in Essex), and will no doubt be among those happy with major support for R&D into, for example, electric cars and technical education announced in today’s Budget.
The weaker pound and commitment to lower corporate tax rates are good news for such a large exporter, too. And while the UK may not have any listed volume carmakers, the industry is exceptionally well represented on London's stock market by technical specialists across the automotive value chain, a reflection of the UK’s rich automotive skills base. So while it is right that there is concern about the industry’s post-Brexit future – and that the government give it special attention – the likelihood is that its deep roots mean it will continue to prosper, and UK investors with it.
