Letters | 5 July 2018

Technical issues

Sir: Martin Vander Weyer’s supposition that car manufacturers are holding back investment due to Brexit seems to be wishful thinking (Any other business, 30 June). Having worked for years for one of the largest international vehicle manufacturers in both finance and export, I can assure him that the investment cycle is almost entirely to do with the product and almost not at all with political concerns.

Car manufacturers, and particularly German ones, are faced with several serious issues which have nothing to do with Brexit. The diesel emissions manipulation issue and whether diesel engines are acceptable will impact on their decisions about petrol vs diesel engine lines, and the likely share of the market available to hybrid and electric cars. Each of them will require major investment decisions by model mix.

These are very difficult and substantial medium- and long-term problems which will be occupying their minds far more, and for far longer, than the potential of a small WTO tariff.