19 October 2018
29 March 2019, 11pm. That is the date and more specifically the time that the UK will leave the EU. With roughly five months to go, we seem to be further away from a deal than ever before. The truth is that as members of the EU, we benefit from over 750 international treaties, and our punishment for leaving is not really a punishment at all – those treaties for us are immediately gone – because we chose it.
The freedom of movement and goods between the EU and the UK is hugely beneficial to the UK automotive industry due to it’s reliance on the 'just-in-time' model of production and delivery, meaning that the right amount of goods arrive at the exact time they are needed – which is heavily reliant on continued frictionless trade between Britain and the EU.
The European Carmakers’ Association ACEA, along with BMW and other leading parts makers have warned that a no-deal Brexit would be catastrophic for this model and therefore the industry. Some warnings have suggested it could set the UK auto industry back two decades.
The sentiment is echoed by Europe’s head of Ford, Steven Armstrong who has stated that a 'no deal' would force the company to re-think their future investment strategy for the UK. The UK is so reliant on the 'just-in-time' delivery model, that even short delays (and therefore increased costs) at customs for the fleets of lorries delivering vehicles and parts into the UK on a daily basis will cause a significant knock-on effect – first to manufacturers, then to dealers, and ultimately consumers.
Should you have any questions about this blog, please do not hesitate to contact our automotive team or fill out our contact form here.
