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UK car industry fears effects of Brexit tariffs on supply chain

peter Campbell | financial times | 17 October 2016

PA Consulting Group’s Tim Lawrence, head of manufacturing, is quoted in an article in the Financial Times. The article looks at the impact of Brexit on the supply chains of car manufacturers based in the UK, as suppliers say uncertainty over trade agreements may force them to relocate overseas. 

Managing through the Brexit automotive sector - report July 2016

 

UK car factories face uncertain future – post Brexit research on the carmakers most likely to leave the UK

 

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The article explains that almost every car manufacturer in Britain is at risk of being hit by tariffs if Britain leaves the European single market. It uses the example of the Bentley Bentaygas to illustrate the interconnectedness of the supply chain: bumpers are made in Europe but then sent to a factory in Crewe for inspection before then going to Germany for specialist painting. After that, they return to the UK for final assembly.

Tim comments: “If you have any tariffs, you would have to fundamentally look at your whole supply chain because you could quickly end up losing your margin on the component.”

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