26 Mar 2019

What will the Cost of Brexit be in the UK Car Industry?

With so much talk surrounding the impact of Brexit on businesses across the UK, many have asked the question about the effect on the car industry.

Unfortunately, the consequences are already being felt as car manufacturers make the headlines in the run-up to a newly-delayed Brexit deadline.

Nissan have written to staff at their Sunderland plant to state their intention to build the new X-Trail model in Japan, rather than in the North East, which had originally been earmarked for production.

Ford has been equally as forthright in its statements regarding Brexit, insisting it would, according to Sky News, take ‘whatever action is necessary’ to ensure European operations remain competitive.

With Honda set to close its Swindon factory in 2021, at a loss of 3,500 jobs, the concerns around jobs in the industry are already being realised. But what about the price of cars?

Fleetworld.co.uk are reporting a 10% tariff will be applied to imported cars from the EU and outside the bloc to provide some form of protection to vehicles made in the UK. But that may well be passed on to customers in the form of price hikes as profit margins are unable to absorb the increase.

Would it persuade you to buy British made cars? Would you stick with a European brand for familiarity but pay extra? Would this push you towards not buying a new car at all?

With the UK automotive industry turning over approximately £82bn per year, any decisions on Brexit will have huge ramifications both in the short and long-term in the car manufacturing sector.

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