Brexit bill defeat threatens British auto repair industry

London, U.K. — January 16, 2018 — The British collision community and broader automotive aftermarket has reacted to the news that its Parliament had resoundingly rejected Prime Minister Theresa May’s proposed Brexit deal with widespread concern.

Without a deal, Britain looks likely to automatically leave the European Union without any trade or customs agreement, beyond those accepted under international law. The Society of Motor Manufacturers and Traders chief executive told news outlets that no deal situation could have a devastating effect on all parts of the British automotive industry–particularly the collision sector.

“Leaving the EU, our biggest and most important trading partner, without a deal and without a transition period to cushion the blow would put this sector and jobs at immediate risk. No deal must be avoided at all costs. Business need certainty so we now need politicians to do everything to prevent irreversible damage to this vital sector,”Hawes said. 

According to a 2017 study commissioned by the SMMT, collision repairers are expected to have to raise their prices by 10 percent, should the U.K. leave the E.U. without any formal agreements. If not, businesses in the industry would see a collective £2 billion per annum dip in profits.

The Association of British Insurers chief executive Huw Evans also pushed for politicians to avoid a no deal exit, saying that “This is uncharted territory and we face a period of unprecedented uncertainty. It is critical that the Government, Parliament and the EU work together to avoid an outcome that would be bad for our economies and bad for our customers.”


Sign-up for the Collision Repair daily e-zine and never miss a story –  SUBSCRIBE NOW FOR FREE!

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *