With the negotiations over Brexit looming ever closer, there are rising concerns regarding how good a deal the newly elected Prime Minister can establish for the UK. One industry that may be severely impacted by the outcome of a ‘soft’ or ‘hard’ Brexit is the motor industry.
Brexit could disturb the big name motor manufacturers such as BMW, as well as independent motor repair shops whose business relies on obtaining specific car parts for their customers’ cars.
The modern motor industry’s supply chain relies on a cross-Channel assembly line, such as the crankshaft used in the BMW MINI. With Theresa May warning that Britain could be leaving the single market, the free movement of goods could come to an end. This would have severe implications for the industry’s supply chain.
How could this impact your motor repair shop? If the UK were to leave the single market, parts prices could increase, and you would have to reflect this, by increasing your own prices – or loose out. For an overview and analysis of the impact of Brexit on the UK automotive sector, have a look at these numbers compiled by Plan Insurance.