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Brexit is being closely watched by British businesses across the country, just like the average Brit. Fears over a ‘no-deal’ Brexit are affecting market outlook, with many industries hoping to make sure they’ve got their lifeboats if the worst should come to pass.
The fleet industry, in particular, has been close to a panic over the prospects of the industry in case of a ‘no-deal’ Brexit, with many fearing that auto parts, and other key supplies, will be unavailable in the aftermath.
In September 2019, the European motor industry issued warnings about the consequences that a ‘no-deal’ Brexit would bring to the market. They report that, should the World Trade Organisation’s current tariffs are applied to the UK, it would affect the market drastically. Prices on new vehicles could go up by 10%, while commercial vehicles and auto parts can go up by 22%, and 4.5%, respectively. Should that come to pass, it would result in the industry collapsing, as its “just-in-time” business model would be crippled by delays.
Fleet Assist, however, has been telling the industry at large not to panic, as their data says that auto parts suppliers in the EU have supplies set aside for the worst. In spite of the fact that about 80% of the replacement parts fitted to British vehicles are imported, Fleet Assist reports that suppliers in the EU still have stockpiles ready at warehouses across the region, allowing for continued normal operations.
According to Fleet Assist, manufacturers in the EU reported that they had an increased supply volume, capable of holding out for several weeks. On top of that, suppliers also reported that they have been stockpiling products to “six months” capacity, until the industry’s status post-Brexit is clear.
On top of that, other companies in the motoring industry, like parts suppliers and independent chains have gone on record to say that they’ve got additional stock invested at a local level.
Fleet Assist says that, in the medium and long-term, the entities they surveyed will do whatever they deem necessary in order to protect their business customers, as well as their partners, and to ensure minimal disruption in the industry at large.
That being said, they report that there are still some factors that they can’t account for, which they can’t control, making it impossible to account for every possible situation.