Brexit and the UK automotive industry

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The UK’s automotive industry has been one of the ‘star performers’ of the UK economy in recent years – unlike most other manufacturing sectors. Output has increased by over 60% since 2010 and there has been over £8bn worth of investment in the industry in the last five years. The industry supports some 800,000 jobs in the UK. The industry is seen as having benefitted from EU membership. So what might Brexit mean for the UK automotive sector, and its workers? This paper considers short run impacts, before turning to the impact of uncertainty on foreign direct investment inflows and then the nature of a possible trading relationship. Some brief reflections on policy implications round off the paper.

Bibliographic note

Bailey, D., & Propris, L. D. (2017). Brexit and the UK Automotive Industry. National Institute Economic Review, 242(1), R51–R59.


Original languageEnglish
Pages (from-to)R51-R59
Number of pages9
JournalNational Institute Economic Review
Issue number1
Early online date31 Oct 2017
Publication statusPublished - 1 Nov 2017


  • Brexit , automotive , trade , industrial policy , European Union