The good news for UK car production keeps coming with Toyota following Nissan and Peugeot in committing further investment to the UK.

This is despite likely tariffs in the region of 10% being imposed post-Brexit on car exports into the EU.

So why is this? There appears to be several contributing factors:

  1. The devaluation of sterling has made car exports cheaper - it is greater than the tariff.
  2. The tariff costs can be passed on to EU consumers.
  3. Productivity in UK car plants is benchmarked higher than some EU plants. 
  4. UK government is seen as a supporter of ensuring a business friendly environment exists with, in particular, a business friendly fiscal policy.
  5. Advanced engineering hubs are being supported close to the plants, creating efficiencies in the supply chain.  
  6. Embracing robotics via the UK industrial strategy, flexible employments laws as well as an emphasis on training and skills in the strategy is seen again as being business friendly.

Can this momentum be maintained? It seems as the Brexit negotiations start the UK government is determined to protect and nurture UK manufacturing. Can the investment in UK auto be translated to UK aerospace and defence, chemicals and hi-tech manufacturing? We will see - but the signs are positive.