In Great Britain, costs have risen sharply following the Brexit vote. Also the vehicle insurance has tightened. This is not a good sign for the car industry of the island nation near the European mainland. Because the exit negotiations for the EU must be completed in 2019. But they really did not get started. So far, the British have shown little understanding of the demands of the EU Commission in Brussels. Everyone agrees that it will hit the automotive industry hard. For this has not been one of the highlights of the British economy in recent years. The focus here was primarily on the luxury segment, which consumers in Great Britain can soon come up with expensive. Because they will soon have to pay high tariffs for cars from mainland Europe. After all, the British government wants to do that in return.
Downstream industry without future?
The automotive industry in the UK is not one of the highlights of the economy – not for decades. However, you have invested a lot and recovered significantly. The fact that the automotive industry could become the industrial backbone of the United Kingdom, there is great doubt in the experts. And yet: Great Britain returns to third place after a number of years with France for third place of the European vehicle manufacturing locations – measured by the number of units produced. Germany takes first place here and Spain second. Every year around 1.8 million vehicles are produced in the United Kingdom. However, these numbers can quickly break again, because the Brexit makes the car boom to the expert opinion negated.
Burglary up to 50 percent
In particular, if the UK continues to massively oppose EU demands for exit agreements, automakers may need to significantly reduce their production numbers. If it comes to punitive duties, etc., then experts fear even a slump by 50 percent of the previous volume. That would be very tough for the British economy, of course. And you would surely condemn Theresa May as much as a Margret Thatscher, who was considered an “Iron Lady”, but was hated in the 1980s, especially in the workforce. And the longer the exit negotiations last, the greater the uncertainties on all sides.