Ahhh Brexit, the cringey, embarrassing and rather confusing political conundrum of the century. While it’s still too early to see if it’s a good or bad thing for the UK we can definitely tell you about what could potentially happen to the industry when it all goes down. So, Article 50 is triggered but what does that mean for your local mechanic and car dealership? In short, it means that the future is uncertain. However, there’s also a good chance that the car industry will be okay. The industry brings in £72 billion of business a year so you can understand why the motor industry should be a key talking point during Brexit negotiations.
Could risk losing money for cars
The UK creates roughly 1.7 million new cars every year and over half of them are shipped off to Europe. Trading body the Society of Motor Manufacturers and Traders (SMMT) has said that we’re at risk of losing this if we’re not careful. The government will have to negotiate a deal. This includes a number of things if our industry wants to continue thriving. These things include securing a tariff-free deal, maintaining a good working relationship with our biggest market and open borders so products, parts and investment can flow with ease.
The motor industry is one of the biggest exporters within the UK market and we currently are responsible for 12% of the UK’s goods exports. But the question that everyone’s asking is where or not a trade deal has actually been confirmed or not? Without this, the UK end up having a 10% levy added onto car prices.
Jobs at risk
Another hot topic of conversation is the job market and how Brexit will impact it. As it stands the UK motor industry is thought to employ around 170,000 people – which is quite a large chunk of the UK workforce, isn’t it? According to the SMMT, those jobs could soon be under threat unless a secure deal is confirmed. Jaguar Land Rover is one of the key companies awaiting this trade deal. This is due to them being the largest car makers in the UK and they have 40,000 employees. Each year they produce 500,000 new vehicles but there are concerns for 1,000 makers of these vehicles as they’re EU nationals. Many of those whose jobs may be under threat are employed in highly skilled product development roles.
What do you think about Brexit?
So, as you can see Brexit isn’t exactly the easiest thing to uncover. It’s one of the most stressful situations that the motor industry has seen for a long time. We’ve had to continually work out what’s happening day by day. Which as you can imagine, isn’t easy given how short the time gap is. However, we have faith in our country, in Europe and the quality services that are provided every day throughout the industry. What do you think about this ever-evolving, ever-changing story? And how do you think it will affect the motor industry in the future? Be sure to let us know your thoughts in the comments by sending us a message on our social media!
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