Executive Briefings

Automotive Supply Chains Will Need Post-Brexit Support, Research Group Says

The UK automotive industry has enjoyed a record year of production, but will need government support to boost domestic supply chains in order to maintain these levels post Brexit, according to a recent report.

In 2016, 1.7 million cars were built in the UK, with 1.3 million of these exported - a record figure, according to Civitas, a nonprofit independent research group. In March 2017, the industry saw 562,337 new cars registered in the UK - another record.

Yet as soon as the UK leaves the EU issues such as rules of origin, customs delays, tariffs and regulatory divergence could impact the automotive supply chain, potentially harming production.

“New customs arrangements could disrupt cross border supply chains or raise their cost, and rules of origin could act as a barrier which, even with a trade agreement, could see tariffs put on UK manufactured goods,” the report said.

Companies including Nissan, BMW and Jaguar Land Rover have raised concerns over the potential impact of Brexit on the UK automotive industry.

The study urges the government to invest across the UK’s manufacturing industries through the expansion of the Advanced Manufacturing Supply Chain Initiative or new initiatives.

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In 2016, 1.7 million cars were built in the UK, with 1.3 million of these exported - a record figure, according to Civitas, a nonprofit independent research group. In March 2017, the industry saw 562,337 new cars registered in the UK - another record.

Yet as soon as the UK leaves the EU issues such as rules of origin, customs delays, tariffs and regulatory divergence could impact the automotive supply chain, potentially harming production.

“New customs arrangements could disrupt cross border supply chains or raise their cost, and rules of origin could act as a barrier which, even with a trade agreement, could see tariffs put on UK manufactured goods,” the report said.

Companies including Nissan, BMW and Jaguar Land Rover have raised concerns over the potential impact of Brexit on the UK automotive industry.

The study urges the government to invest across the UK’s manufacturing industries through the expansion of the Advanced Manufacturing Supply Chain Initiative or new initiatives.

Read Full Article