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Motor industry must look closer to home for parts

graeme paton | the times | 28 february 2017 

PA’s Thomas Goettle, an automotive expert, is quoted in The Times, in a news article about the UK motor industry supply chain and the effects of Brexit.

The article explains that more automotive manufacturers are looking to the British supply chain for car parts, due to the prospect of expensive tariffs being imposed on cross-border trade.

The article draws on PA’s recent Brexit automotive report which says that factories owned by Toyota and Honda were at most risk of closure after Brexit because they were “highly reliant on exports to Europe and have relatively low margins and profitability”.

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

 

download report

 

 

The article goes on to say that PA's report also put question marks over factories run by Mini, Nissan and Vauxhall.

Thomas explains that manufacturers were likely to prioritise plants in continental Europe. He says: “The easiest place to close plants is going to be in the UK because the unions are not as strong and government not as supportive as they are in Germany and France, and the plants are more expensive to maintain than they are in Poland.”

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