Brexit: the UK Automotive Industry Reacts

By on June 28, 2016 in IN THE NEWS, SUPPLY CHAINS

From Richard Aucock/Motoring Research

Britain has voted to leave the European Union, a decision that could have a particular impact on the automotive industry: of the 1,682,156 vehicles produced here in 2015, 77.3% were exported and 57.5% went to Europe.

That equals almost 750,000 cars being exported to the EU: with the average value of an export being £20,900, this means £15.6 billion of trade could be in jeopardy if, once British export plans are confirmed, a swift resolution to trade deals is not found.

Britain’s next-biggest automotive trade partner is the United States, which take just 10.9% of exports: the ramifications are potentially thus serious.

Top export destinations for UK cars

  1. EU: 57.5%
  2. US: 10.9%
  3. China: 7.0%
  4. Turkey: 2.9%
  5. Australia: 2.8%
  6. Russia: 2.0%
  7. Japan: 1.8%
  8. South Korea: 1.7%
  9. Canada: 1.2%
  10. Israel: 1.2%

The short-term impact on British motorists is also potentially costly. The RAC has already predicted fuel prices will rise by 2p a litre due to the fall in the value of sterling, while Glass’s says there will be a slowdown in market activity as people put off big-ticket purchase decisions because of the Brexit uncertainty. READ MORE …

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