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The impact of membership on the º£½ÇÊÓƵ’s auto industry was explored recently in a report by the Society of Motor Manufacturers and Traders (SMMT) and KPMG, entitled . It found some big benefits for the º£½ÇÊÓƵ’s auto industry from staying in the EU, particularly in relation to investment, growth and job creation.

The report stresses that EU membership boosts both the attractiveness of the º£½ÇÊÓƵ as a place to invest, and the competitiveness of the domestic automotive industry. Not surprisingly, it notes that access to the Single Market is fundamental to º£½ÇÊÓƵ auto manufacturing, thereby supporting sales and facilitating supply chain growth. It also adds that EU bargaining power in trade negotiations is critical to improving access to international growth markets, thereby helping major exporters such as Jaguar Land Rover.

A second argument centres on regulations and standards. The report highlights that the º£½ÇÊÓƵ needs a powerful voice at the EU level to make sure that the specific needs of the º£½ÇÊÓƵ’s auto industry are considered.

This is a key argument that those in favour of exit fail to take on board.  Some 45% of º£½ÇÊÓƵ auto export go to the EU, so even if (a big if) the º£½ÇÊÓƵ were to leave and still have some sort of access to the Single Market, producers in the º£½ÇÊÓƵ would still have to meet European regulations so as to sell into Europe. That would mean having to anyway follow European regulations rather than helping to shape them, which might mean German of French firms shaping them for their own benefit.

Other arguments for remaining in the EU include ensuring access to EU funding that has boosted R&D and innovation at businesses and universities in the º£½ÇÊÓƵ, and the free movement of labour which enables º£½ÇÊÓƵ-based firms to combine domestic and international talent (which is especially important giving skills shortages in the º£½ÇÊÓƵ industry).

Of course, that doesn’t mean that the EU can’t be improved, such as through the simplification of regulations and reducing complexities for firms operating in the EU.

But it does suggest – as Mike Hawes at the SMMT has noted – that when it comes to auto “being part of a strong Europe is critical for future success”. He added that “if we are to maintain this position and increase access to growing global markets, the º£½ÇÊÓƵ must play a key role in shaping EU policies, budgets and regulations”.

John Leech at KPMG also noted that “research and development, which is vital to the º£½ÇÊÓƵ’s ability to be at the forefront of innovation in car manufacturing, is both heavily funded by the EU and requires access to the expertise and free movement of skilled engineers within the EU”.