[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/smart-motoring.com\/blog\/brexit-vs-the-car-industry\/#BlogPosting","mainEntityOfPage":"https:\/\/smart-motoring.com\/blog\/brexit-vs-the-car-industry\/","headline":"Brexit Vs. The Car Industry","name":"Brexit Vs. The Car Industry","description":"How has the UK leaving the EU affected the car industry and the giant companies within? How exactly will the \u2018b-word\u2019 affect our beloved motoring industry? Some of the biggest brands in car manufacturing have already changed their plans to fit around Brexit, whereas others have made little to no changes in the way they operate. Furthermore, analysts and business journalists have been speculating all the various ways that Brexit could affect the motoring industry as a whole, claiming that […]","datePublished":"2020-03-02","dateModified":"2020-03-16","author":{"@type":"Person","@id":"https:\/\/smart-motoring.com\/author\/isabelle-lawrence\/#Person","name":"Isabelle Lawrence","url":"https:\/\/smart-motoring.com\/author\/isabelle-lawrence\/","identifier":30,"description":"Max Wheeler is a leading motoring journalist and classic car specialist at Smart Motoring, renowned for his sharp insight and infectious passion for all things automotive. With years of experience covering motoring news, supercars, and the enduring legacy of classic cars, Max brings stories to life with style and authority. Whether it\u2019s the roar of a Lamborghini, the elegance of an Aston Martin DB5, or the cultural impact of vintage motoring icons, he delivers expert commentary that inspires enthusiasts and collectors alike. Dedicated to celebrating the heritage and future of driving, Max Wheeler is your trusted voice for classic car news and beyond.","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8d331506e3c530b5ec4930c30a01ed8cc29b0537227573ae5da98f559e681401?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8d331506e3c530b5ec4930c30a01ed8cc29b0537227573ae5da98f559e681401?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Smart Motoring","logo":{"@type":"ImageObject","@id":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2024\/10\/smart-motoring_news_logo_g-e1765846726493.webp","url":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2024\/10\/smart-motoring_news_logo_g-e1765846726493.webp","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2020\/03\/Brexit-Vs.-The-Car-Industry-feature.jpg","url":"https:\/\/smart-motoring.com\/wp-content\/uploads\/2020\/03\/Brexit-Vs.-The-Car-Industry-feature.jpg","height":520,"width":1200},"url":"https:\/\/smart-motoring.com\/blog\/brexit-vs-the-car-industry\/","about":["BLOG","Cars","LATEST CAR NEWS"],"wordCount":1005,"keywords":["Brexit","Car Industry","Car Manufacturer"],"articleBody":"How has the UK leaving the EU affected the car industry and the giant companies within?How exactly will the \u2018b-word\u2019 affect our beloved motoring industry? Some of the biggest brands in car manufacturing have already changed their plans to fit around Brexit, whereas others have made little to no changes in the way they operate.Furthermore, analysts and business journalistshave been speculating all the various ways that Brexit could affect themotoring industry as a whole, claiming that billions of pounds could be lost,or gained, depending on who\u2019s writing!Let us, the best motoring site in the galaxy,to tell you exactly what\u2019s going on. Honda announces future closure of Swindon plantEarly last year, Honda went on record toannounce that its Swindon car plant will close in 2021 and the 3,500 jobs thatcome from said plant will be lost. The Swindon plant is Honda\u2019s only factory inthe EU and around 160,000 vehicles are produced in that plant each year. This sudden move\u2019s relation to Brexit is unconfirmed as Ian Howells, senior vice-president for Honda in Europe,\u00a0 totally denied Brexit\u2019s influence:“We’re seeing unprecedented change in theindustry on a global scale. We have to move very swiftly to electrification ofour vehicles because of demand of our customers and legislation.“This is not a Brexit-related issue forus, it’s being made on the global-related changes I’ve spoken about.\u201d“We’ve always seen Brexit as somethingwe’ll get through, but these changes globally are something we will have torespond to. We deeply regret the impact it will have on the Swindoncommunity.”Very interesting indeed. Was the timing ofBrexit and Honda\u2019s UK exit just a coincidence? Nissan says post-Brexit Britain \u2018would not be viable\u2019 without a free-trade agreementNissan\u2019s Sunderland plant could face a similarfate as the company gives off a stark warning that without a suitablefree-trade agreement, Nissan would struggle to continue to operate as theycurrently do in the UK.In the case that a free-trade agreement isn\u2019t met and a 10% tariff on cars and parts is put into place, it could ruin the company\u2019s entire European strategy.Gianluca de Ficchy, chairman of Nissan Europesaid \u201cWe would not be viable,\u201d and \u201cWe just wouldn\u2019t be able to sell our cars.\u201dSunderland is the UK\u2019s biggest car plant andalso is responsible for around three-quarters of the company’s European output.Ford says no-deal Brexit will make them reconsider UK investmentsAlthough we\u2019re a little closer to getting adeal than we were last year, things are still uncertain and in the case thatthe UK leaves the EU without a deal, Ford warns that it could be disastrous forthem. In this case, Ford \u201cwill have to considerseriously the long-term future of our investments in the country,\u201d as said byMr Armstrong, Ford\u2019s Europe Chairman.\u201cWe’ve been very consistent since thereferendum that a hard Brexit, a no-deal Brexit, would be a disaster for theautomotive industry in the UK and within that of course I count Ford MotorCompany,\u201d \u201cSo anything that puts tariffs or friction atthe borders in place would be a significant inhibitor to our business. We’vebeen very clear in saying that could cost us up to a billion dollars a year.\u201dBMW could be forced to put workers on prolonged unpaid leaveBMW may have to place workers at their Oxfordplant on unpaid leave for two weeks in the scenario of a no-deal Brexit. The original plan was to place workers on leave from 31 October, when Brexit was meant to happen. However, fortunately, the Oxford plant didn\u2019t close on that date as Brexit didn\u2019t happen until January. Although BMW didn\u2019t place their Oxford workerson unpaid leave, BMW have announced that they will have to postpone the launchof their new Mini models due to Brexit uncertainty. This was announced at theend of January 2020 where BMW spokesman Maximilian Schoeberl said:“The lifespan of this platform has beenextended…For cost reasons and because of Brexit.”The current Mini hatchback has been on themarket since 2014 and was due to be replaced soon, but now I guess we\u2019ll haveto wait a little longer. UK manufacturers turn to the government for helpMost recently, the trade body for the UK\u2019s carmanufacturers called on the government for support in the upcoming March 11budget. This followed a reduction in output seen in January of 2.1%.“The upcoming Budget is an opportunityfor the government to provide supportive measures to stimulate the market, butthe biggest boost would be the agreement of an ambitious free-trade deal withEurope,” said SMMT CEO Mike Hawes.“This would end the ongoing uncertainty and help the UK to recover its hard-won reputation as a great place for automotive investment.”We\u2019ll have to wait and see whether thegovernment listen to automakers\u2019 suggestion.So, as you can see, the roller coaster ridethat is Brexit has been just as turbulent for the UK car industry as it hasbeen for most other affected industries. We\u2019ve seen over the past year howvarious car companies, from Honda to JLR, have had to think and rethink againabout how they\u2019re going to deal with all the uncertainty that comes with the UKleaving the EU. They\u2019re all holding their breath for Boris Johnson to finally achieve a deal and successfully leave the EU with a free-trade agreement in hand. Until that day comes, expect to continue hearing about how these car companies will have to close their factories, lay off employees and postpone their next line of cars. It\u2019ll all be over soon! Probably\u2026Let us know your thoughts on the matter in the comments! And, if you enjoyed this, you\u2019ll probably also enjoy reading about what we have to say about the UK\u2019s pothole pandemic!"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/smart-motoring.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Brexit Vs. The Car Industry","item":"https:\/\/smart-motoring.com\/blog\/brexit-vs-the-car-industry\/#breadcrumbitem"}]}]