Over-regulation could force production east, motor chiefs warn

Over-regulation threatens to cloud a bright future for companies in the automotive sector and could see more production moving east. That's the central theme in Automotive Manufacturing 2006 – the industry perspective, SMMT's fourth issues survey which pooled the views of more than 100 senior executives.

The latest warning from the UK industry, follows publication of last year's CARS21 report in Europe. This pointed to the effect that inconsistent and conflicting regulatory objectives were having on European competitiveness. Recommendations were made to streamline rules and limit the cost burden to the auto industry. SMMT fully endorsed these recommendations, and today urges government to follow these principles here.

'Automotive manufacturing is alive and well and has a bright future', commented SMMT president Roger Putnam. 'Productivity has improved, the skills gap is narrowing and business prospects are promising. However, the spectre of over-regulation looms threateningly. Government must heed our concerns and avoid the temptation to regulate Britain's largest manufacturing sector out of existence.'