JornayaTrusted Form

How Will Brexit Affect the UK Auto Industry?

Deliver Your Vehicle Stress Free

Compare our rates to or from: any location in the world

  • Deliver Your Car Stress Free and Have Peace of Mind
  • Licensed, Bonded and Insured Carriers Near You
  • Award Winning Service, Always on Time

Get instant quotes using our form, or call:

Auto Shipping Quote Calculator
How Will Brexit Affect the UK Auto Industry?
How Will Brexit Affect the UK Auto Industry?

This is How Will Brexit Affect the UK Auto Industry?

Brexit has and will continue to be a highly controversial issue. Politics aside, Brexit has very real ramifications on international trade and business dealings, and, as the topic of this article suggests, the UK auto industry.

While it's still too early to tell if it'll benefit the United Kingdom or end up being a detriment, these are some of the ways in which the UK auto industry will be potentially affected by Brexit:

Decrease in Investments in the UK Auto Industry

This has actually already started to take place. In 2015, there was £2.5 billion invested in the UK auto industry, while in 2016, this number decreased by 30% to £1.66 billion. So far, 2017 isn't faring any better. In fact, it's actually doing far worse, with only £322 million being invested through the first six months of 2017.

The main reason for this decrease in investments is that there's a great deal of uncertainty as to what Brexit will mean to the UK auto industry in terms of trade agreements. There's almost a "wait and see" type of approach being taken.

Vehicle Production Has Decreased

In spite of the auto industry in the UK experiencing a resurgence during the past several years, it has now shifted the other way. According to the Society of Motor Manufacturers & Traders (SMMT), there has been a 10% decrease in May 2017 compared to May 2016 in the UK's car output. April 2017 also decreased in comparison to April 2016.  See for more information.

A-1 Auto Transport ships worldwide. Click Here or call to get a free, no obligation to buy, price quote for your shipment.

What's worse is that the UK is in danger of having major auto manufacturers produce their cars in other countries in the EU. BMW has already stated that they're considering manufacturing their electric MINI outside of the UK as a result of uncertainty. According to BMW, "“Uncertainty is not helpful when it comes to making long-term business decisions (see this source)."

The Price of Cars May Increase

Exacerbating the negative sentiment is that imported cars in the UK might increase in sale price by an average of £1,500 based on various projections. Since the UK's car exports make up 12% of their total goods exports, there's also concern that there will be a 10% levy placed on cars.

This means that the car prices that the rest of the EU imports from the UK might also see an increase in their sale price. The SMMT claims that there's a good possibility that the UK auto sector will eventually see a £4.5 billion increase in costs. This will be due to:

  • A £1.8 billion increase in the cost of fully-assembled vehicles in the UK;
  • A £2.7 billion increase in the cost of those same vehicles that are exported to the EU.

What the Future Holds

Investments in the UK auto industry have already decreased significantly and will most likely continue to do so. Negotiations are still ongoing, however, as the UK works out the details of their exit from the EU. The hope, especially by auto industry leaders, is that an arrangement is made that pretty much continues the tariff-free trade and maintains the ability to access top workers and materials from the EU and vice-versa.

Brexit has and will continue to remain controversial.

For international auto shipping needs in the UK, A-1 Auto Transport will still be able to help. Contact us today!

Joe Webster
Written By:Joe Webster
Connect with Joe Webster on facebookConnect with Joe Webster on linkedin

Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing. 

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood. 

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.

Ship Your Vehicle With A-1 Auto Today
Get an Instant Quote

Or Call Us Today and Speak to Directly to Our Sales Team:

Our Partners:

Better Business Bureau Accredited
FMCSA Member
INC. 500 Member
VeriSign Secured
AMSA Member

A-1 Auto Transport is a disclosed agent for the following shipping companies:

Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus drive
Edison, NJ 08837
NO. 17858N
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
Copyright © 1988-2020, A-1 Auto Transport - All Rights Reserved.