How will Brexit affect the auto industry?
At Autos of Dallas, we have our eyes on luxury automakers constantly. Many of our luxurious brands – Mercedes-Benz, BMW, Land Rover, Jaguar and more – are manufactured overseas, with many models made in the United Kingdom. Recently, the U.K. has been in the news regarding Brexit – their break from the European Union. Since we’re all about luxury (and maybe you are too), we wanted to know this: how will Brexit affect the auto industry? The changes that could be made are potentially large, but could still be impacted by outside forces. Read on to find out more!
What is Brexit?
Brexit stands for “British Exit” and it is exactly that – the British exit from the European Union (E.U.). On June 23, 2016, the British opted to leave the E.U. Of course, this shook up items like the global market, the British pound and so much more (and will continue to do so). The next couple of years will be spent negotiating and re-hashing Britain’s future. Of course, the true effects of the Brexit won’t be able to be determined until that time. So, will it have an effect on the auto industry?
What will Brexit do to European, American, Japanese and Italian auto brands?
So far, it’s difficult to tell exactly what will happen with each and every auto brand. Potentially, profits could go down and the brands will have to move their manufacturing elsewhere. While that could be the case, there’s also a chance that negotiations surrounding tariffs – which, again, will take place over the next couple of years – could make the impact less detrimental. As far as immediate effects, investors will likely be wary of taking stock in a model manufactured in Britain. For now, we can hang on to the hope that negotiations are in favor of giving us easy access to our made-in-the-U.K. models.
