The British auto sector put itself firmly behind the campaign to remain in the European Union, as its industry body released a poll showing that the overwhelming majority of its members supported EU membership.

According to the survey published by the Society of Motor Manufacturers and Traders (SMMT), 77 per cent of its members believe remaining in the EU would be good for business.

Of the larger businesses — which include Jaguar Land Rover — not a single firm said that exiting would be in its best business interests.

Members cited the importance of accessing the EU automotive market — which Britain is currently able to do tariff-free — accessing a skilled work force from Europe (Britain currently has 5,000 unfilled vacancies in the auto sector) and being able to influence standards and practices in a highly regulated industry.

The auto sector is the latest to voice concerns about the possibility of a Brexit, which could follow the June 23 referendum.

Backing the campaign

While Prime Minister David Cameron has put himself behind the “remain” campaign, following the conclusion of negotiations on Britain’s terms of membership, several members of the Cabinet are backing the leave campaign, while opinion polls have put support for both campaigns neck-and-neck.

“Europe and the single market are fundamental to this industry,” said Mike Hawes, Chief Executive, SMMT, on Thursday. He added that the possibility of tariffs in a currently tariff- free industry would hit an industry which operated with very tight margins.

“Regulations from the EU would still apply when we are selling into it and Britain’s role as a rule shaper rather than a rule taker is a critical one,” said Tony Walker, Deputy Managing Director, Toyota Motor Manufacturing UK.

High production

While no vehicle manufacturer has yet warned that its investments in the UK are subject to review should a Brexit go ahead, the industry has pointed out that it would come at a time when the sector has been thriving, partly due to sales in Europe, which have made up for weakness in China and other Asian markets.

According to data released by the SMMT in January, British car production reached a 10-year high in 2015, with demand from Europe up 11 per cent on 2014.

Jaguar Land Rover became Britain’s largest automaker in 2015, selling over 100,000 vehicles in Europe alone, just under a fifth of its total for the year.

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