Is Brexit the Biggest Threat to the UK Car Industry? [Infographic]
The truth is that car industry has voiced their concerns over Brexit, stating that an introduction of tariffs after the UK leaves the EU is an issue that could potentially result in job losses. In fact, phenomena as Brexit is purely new and all that is to come of such activity is yet to be discovered. Countries such as Germany have warned that a ‘hard' Brexit will damage Britain's automotive industry. They say they are likely to move production to Eastern Europe, where there are low-cost EU countries. This is because an exit from the EU single market will mean tariff costs and an increase in prices. However, we all wonder whether Britain will choose this particular area for future automobile manufacturing. After all, there are numerous countries and areas that offer such low-cost labour force.
Although the likes of Nissan are claiming they wish to continue building models in UK factories, and therefore safeguarding jobs, there are fears that Brexit will damage Britain's economy overall. The UK manufactures 1.7 million cars a year, over half of which are shipped to the EU. As it seems, both sides benefit from such situation. However, a radical change in politics, as Brexit suggests, would definitely change the course of economy and force countries to find new ways of collaborating with each other. We do live in strange times. And we all wonder who would benefit from such a situation.