Insight

The impact of Brexit on automotive manufacturing in the UK

Jul 13, 2016

Several UK car factories face an uncertain future following Britain’s vote to leave the European Union, according to our latest research. A period of uncertainty during talks between the UK and the EU over Brexit may prompt some overseas carmakers with UK plants to place their investment on model upgrades elsewhere in the world.

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

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

If the UK’s access to the single market is deemed inadequate, some UK factories could close because they would be uncompetitive. Plants run by Honda and Toyota are most at risk of closure after Brexit, according to the research.

The UK exports over 1.2m cars per year with over half going into the EU. Our research suggests that, if current high levels of uncertainty following the Brexit vote continue, demand and sales could fall by 5 to 10 percent.

Our research has identified three categories of car makers in the UK:

  • The Leavers
  • The Question marks
  • The Stayers

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