UK Automotive Industry staggers under punches from Brexit and Covid-19
Society of Motor Manufacturers and Traders warns that the UK automotive industry is under catastrophic threat from Brexit and Coronavirus
The post UK Automotive Industry staggers under punches from Brexit and Covid-19 appeared first on LUXUO.
The UK?s historic Brexit vote on 23 June 2016 sent the UK automotive industry reeling. Not only were 53% of cars produced in Britain sold in the EU, but an average 60% of the automotive supply chain depended on car components are imported from the continent. By August 2019, the UK automotive industry was already reeling from £257 million dropÂ
in investment. This was largely attributed to the uncertainty around Brexit, as fears where the UK leaves the European Union without a deal protecting the cross-border trade looked increasingly probable. An internal memo written pre-Referendum estimated that Brexit could hit profits by over £1bn by 2020, much of that is due to the havoc such trade barriers might wreak on the UK automotive supply chain.The was pre-covid-19. Since then, talk of Brexit has practically disappeared thanks to a news cycle dominated by the coronavirus outbreak. Though barely mentioned in these tumultuous days, UK’s departure from the EU is still a looming spectre as UK Premier Boris Johnson stated that the Kingdom will not extend its transitional period with the EU beyond 2020. As a result, cars coming in from abroad in 2021 will be subject to a 10% import tariff if the UK and EU fail to strike a deal. Some 8...
The post UK Automotive Industry staggers under punches from Brexit and Covid-19 appeared first on LUXUO.
The UK?s historic Brexit vote on 23 June 2016 sent the UK automotive industry reeling. Not only were 53% of cars produced in Britain sold in the EU, but an average 60% of the automotive supply chain depended on car components are imported from the continent. By August 2019, the UK automotive industry was already reeling from £257 million dropÂ
in investment. This was largely attributed to the uncertainty around Brexit, as fears where the UK leaves the European Union without a deal protecting the cross-border trade looked increasingly probable. An internal memo written pre-Referendum estimated that Brexit could hit profits by over £1bn by 2020, much of that is due to the havoc such trade barriers might wreak on the UK automotive supply chain.The was pre-covid-19. Since then, talk of Brexit has practically disappeared thanks to a news cycle dominated by the coronavirus outbreak. Though barely mentioned in these tumultuous days, UK’s departure from the EU is still a looming spectre as UK Premier Boris Johnson stated that the Kingdom will not extend its transitional period with the EU beyond 2020. As a result, cars coming in from abroad in 2021 will be subject to a 10% import tariff if the UK and EU fail to strike a deal. Some 8...
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