25 June 2016

Brexit: Business As Usual

There's been a lot said of what will happen if Brexit went ahead. As we all know, it did. For a car blog, the obvious thing is how will the car industry handle it? Well I'm sure the car makers want business as usual. Sudden shifts in demand does no one any good. There is no need for upheaval as there are many trade deals around the world and the open trade is the better way.

Germany exports about 20% of all the cars it makes to the UK or somewhere in the region of 820,000 units in 2015. To lose even some of that would be a huge blow. However, I do believe that trade will not be the issue some claim. In fact the more cars that Europeans buy that are made in the UK, the more leverage they have to ensure access both ways is protected.

The one thing that could be a problem is currency rates. If the pound remained at a low level, then imported mainstream models into the UK in particular would be affected. Either a car manufacturer would accept less profit or have to increase prices.

I really think the whole thing can be handled with no fuss and that is how car makers and governments would want it. It can be business as usual.

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