Impact of Brexit on the UK Automotive Industry and Mitigation Strategies

Impact of Brexit on the UK Automotive Industry and Mitigation Strategies

UK Manufacturers Could Lose Up to £800 Million If Approval Framework Doesn’t Suit UK Terms

RELEASE DATE
25-Oct-2018
REGION
Europe
Research Code: 9AB2-00-D7-00-00
SKU: AU01721-EU-MR_22467

$1,500.00

Special Price $1,125.00 save 25 %

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SKU
AU01721-EU-MR_22467

$1,500.00

$1,125.00 save 25 %

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Description

The Brexit vote on 23 June 2016 is considered by many to beginning of UKs slowdown in the world economy. By what is considered to be the UK ‘shooting itself in the foot’, the UK has to construct an exit plan that will enable it to leave the European Union without causing further damage to its economy.

This study talks about what the potential scenarios could be, leading up to the UK exiting the EU. These are considered as:
• Comprehensive Economic and Trade Agreement (CETA)
• No deal (bringing in WTO tariffs)
• Soft brexit, also known as Chequers terms

The study talks about what each of these trade agreements means to the UK in terms of duties on goods and services, effects on labour, customs checks, and procurement.

It further analyses what each of these deals would mean to the automotive industry in the UK, and also in the EU considering that it is the UK’s single largest export market. Its compares between the three scenarios mentioned in terms of:
• Changes in certification due to different EU and UK regulations
• Customs inspection now that there will be a border
• Rules of origin of both parts and vehicles

To full understand how Brexit is going to impact the UK automotive market, different scenarios are presented:
• New car registrations: given that the best-selling and most of the vehicles sold in the UK are made in the EU, how will the aforementioned scenarios impact this? Is there going to be any future change in terms of sales in terms of rebounding?
• Production: how are new tariffs, either under the hard or soft Brexit deals going to impact production in the UK, of cars, commercial vehicles and parts? The report talks about what the changes are going to be in terms of labour in the market, considering that a significant portion of it comes from the EU mainland.
• Investment: the UK was considered to be a choice for strategic and safe investments, both in terms of production and development. Now that it is going to be separate from the EU, what does this do to the economy and how much is the investment going to decrease going forward?

The report also details the impact Brexit is going to have on the automotive aftermarket industry. Given the huge amount of parts and services that are both imported and exported between the UK and the EU, a soft Brexit deal is critical to the continued successful functioning of this trade.

The report also discusses how much this is going to cost the end customer and businesses in the aftermarket trade, especially suppliers who manufacture the parts and installers that service end customers vehicles.

Table of Contents

Executive Summary—Key Findings

Executive Summary—Implications of Brexit

Executive Summary—Market Opportunity Analysis

Research Scope

Research Aims and Objectives

Key Questions this Study will Answer

Research Methodology

The Brexit Timeline

6 Brexit Political Possibilities

Likely and Unlikely Brexit Scenarios

Brexit Scenarios—CETA/CETA Plus Scenario

Brexit Scenarios—No Deal (WTO) Scenario

Brexit Scenarios—Soft Brexit (Chequers) Scenario

Summary of Brexit Scenarios

Brexit Scenario-Based Economic Impact on the Automotive Industry

Transition Period Introduction

Transition Period Impact

Automotive Trade Between UK and EU

Snapshot of UK and EU Automotive Trade Balances

Implications of Brexit

Total UK Vehicle Parc

Impact of Brexit on New Car Sales

Impact of Brexit on Vehicle Production

UK’s Substantial Vehicle Manufacturing

Commercial Vehicle Production

Automotive Industry Investment Post-Brexit

UK Aftermarket and EU Trade

Impact of Brexit on the Aftermarket Industry

Automotive Brexit Mitigation Strategies

Mitigation Strategies for OEMs and Suppliers

Market Opportunity Analysis

Growth Opportunities Emerging from Brexit

Strategic Imperatives for Success and Growth

The Last Word—3 Big Predictions

Legal Disclaimer

List of Exhibits

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
The Brexit vote on 23 June 2016 is considered by many to beginning of UKs slowdown in the world economy. By what is considered to be the UK ‘shooting itself in the foot, the UK has to construct an exit plan that will enable it to leave the European Union without causing further damage to its economy. This study talks about what the potential scenarios could be, leading up to the UK exiting the EU. These are considered as: • Comprehensive Economic and Trade Agreement (CETA) • No deal (bringing in WTO tariffs) • Soft brexit, also known as Chequers terms The study talks about what each of these trade agreements means to the UK in terms of duties on goods and services, effects on labour, customs checks, and procurement. It further analyses what each of these deals would mean to the automotive industry in the UK, and also in the EU considering that it is the UKs single largest export market. Its compares between the three scenarios mentioned in terms of: • Changes in certification due to different EU and UK regulations • Customs inspection now that there will be a border • Rules of origin of both parts and vehicles To full understand how Brexit is going to impact the UK automotive market, different scenarios are presented: • New car registrations: given that the best-selling and most of the vehicles sold in the UK are made in the EU, how will the aforementioned scenarios impact this? Is there going to be any future change in terms of sales in terms of rebounding? • Production: how are new tariffs, either under the hard or soft Brexit deals going to impact production in the UK, of cars, commercial vehicles and parts? The report talks about what the changes are going to be in terms of labour in the market, considering that a significant portion of it comes from the EU mainland. • Investment: the UK was considered to be a choice for strategic and safe investments, both in terms of production and development. Now that it is going to be separate from the EU, what does this do to the economy and how much is the investment going to decrease going forward? The report also details the impact Brexit is going to have on the automotive aftermarket industry. Given the huge amount of parts and services that are both imported and exported between the UK and the EU, a soft Brexit deal is critical to the continued successful functioning of this trade. The report also discusses how much this is going to cost the end customer and businesses in the aftermarket trade, especially suppliers who manufacture the parts and installers that service end customers vehicles.
More Information
No Index No
Podcast Yes
Author Viroop Narla
Industries Automotive
WIP Number 9AB2-00-D7-00-00
Is Prebook No
GPS Codes 9800-A6,9832-A6,9AF6-A6