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Manufacturing

Brexit Day: How leaving the EU will impact the º£½ÇÊÓÆµ car manufacturing industry

We leave the EU at 11pm tonight - but what does that mean for our biggest manufacturers such as Jaguar Land Rover, Vauxhall and Nissan?

Brexit: What will change after January 31?

The car industry has taken several hits in recent times - not least Jaguar Land Rover's decision to cut jobs, Honda shutting down its Swindon plant and Ford calling time on its Bridgend site in South Wales.

In the lead-up and aftermath to these massive decisions being taken by automotive giants who - previously at least - had been committed to the º£½ÇÊÓÆµ, Brexit has often been blamed as a key factor by many, whether or not cited as a reason by the car companies themselves.

But with the country set to leave the European Union this evening, three and a half years after the 2016 referendum, how much of a factor will the º£½ÇÊÓÆµ's departure have on the car manufacturing industry - and is there any reason at all to be positive?

BusinessLive asked the experts.

Just five years ago, º£½ÇÊÓÆµ car production was growing and on target to hit 2m units a year by 2020 - but output now risks falling below 1m a year, according to research by David Bailey, professor of business economics at Birmingham Business School.

By 2019, he explained, something of a "perfect storm" had hit the car industry - a "triple whammy" of declining sales in China, a shift away from diesels across Europe, and Brexit uncertainty slowing the º£½ÇÊÓÆµ market.

The industry then took further hits as JLR announced it was to cut 4,500 workers, Honda and Ford announced they would close their Swindon and Bridgend plants respectively, and Nissan said it could go back on its decision to build the XTrail model in Sunderland - citing Brexit as a "complicating factor".

The Jaguar Land Rover site at Halewood.(Image: LIVERPOOL ECHO)

What the professors said about what happens next

Following the Conservatives' huge General Election majority achieved in December 2019, we will leave the EU at 11pm, after which an 11 month-long transition phase will start.