What Brexit means for the automotive industry
As the second largest car manufacturer in Europe, Britain is prime territory for the automotive industry, which will be watching closely to see how the winds of change are blowing.
The dramatic plunge in value of the pound, and market fluctuations, have worried many forecasters, although others predict the effects are likely to only be a minor blip – mainly because the automotive industry is so global.
Of the automotive giants, most have said that they have not yet made changes to their current plans.
Living with Bregret…the UK’s car manufacturers
Ford, which has three separate UK plants, has said it will “take whatever action is needed to ensure that our European business remains competitive."
Jaguar Land Rover, the UK’s biggest automotive manufacturer, is keen to maintain generous trade arrangements with the EU – which represents around 20% of its market.
Meanwhile, French-owned PSA – who own the UK-based Peugeot and Citreon subsidiaries – has threatened possible pricing reconstructions.
So far, the automotive industry’s least known reactions worryingly come from Honda and Nissan, two of the UK’s largest car manufacturers. But with the balance of imports in the EU’s favour – something that will weigh heavily in any tarrif negotiations – and the fact that they are already two of the most efficient plants in the world, they are more likely to remain than leave.
It’s two way traffic…
Germany, regarded as the powerhouse of the automotive world, relies heavily on the UK market; and the Financial Times reported earlier this week that German manufacturers fear Brexit will hit German exports to Britain. About a fifth of all cars produced in Germany are exported to the UK – and German manufacturers also own more than 100 UK-based production plants.
BMW’s mini and Rolls Royce brands are wedded to the British identity, and BMW announced that it wouldn’t make any immediate changes to its UK operations.
Motorists can expect more custom controls, especially for commercial vehicles. And you may not be able to stuff your boot with as much alcohol as you used to…
We’ve lost the map…
So far, the ripples of Brexit are hard to read. The road ahead is essentially uncharted territory, but as far as the automotive industry goes, it’s not time to panic just yet.
The dramatic plunge in value of the pound, and market fluctuations, have worried many forecasters, although others predict the effects are likely to only be a minor blip – mainly because the automotive industry is so global.
Of the automotive giants, most have said that they have not yet made changes to their current plans.
Living with Bregret…the UK’s car manufacturers
Ford, which has three separate UK plants, has said it will “take whatever action is needed to ensure that our European business remains competitive."
Jaguar Land Rover, the UK’s biggest automotive manufacturer, is keen to maintain generous trade arrangements with the EU – which represents around 20% of its market.
Meanwhile, French-owned PSA – who own the UK-based Peugeot and Citreon subsidiaries – has threatened possible pricing reconstructions.
So far, the automotive industry’s least known reactions worryingly come from Honda and Nissan, two of the UK’s largest car manufacturers. But with the balance of imports in the EU’s favour – something that will weigh heavily in any tarrif negotiations – and the fact that they are already two of the most efficient plants in the world, they are more likely to remain than leave.
It’s two way traffic…
Germany, regarded as the powerhouse of the automotive world, relies heavily on the UK market; and the Financial Times reported earlier this week that German manufacturers fear Brexit will hit German exports to Britain. About a fifth of all cars produced in Germany are exported to the UK – and German manufacturers also own more than 100 UK-based production plants.
BMW’s mini and Rolls Royce brands are wedded to the British identity, and BMW announced that it wouldn’t make any immediate changes to its UK operations.
Likely effects…
Motorists can expect more custom controls, especially for commercial vehicles. And you may not be able to stuff your boot with as much alcohol as you used to…
And if current market conditions continue over the next fortnight, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre, or £1.25 a tank.
We’ve lost the map…
So far, the ripples of Brexit are hard to read. The road ahead is essentially uncharted territory, but as far as the automotive industry goes, it’s not time to panic just yet.
Comments
Post a Comment