Today, a large proportion of car manufacturers and suppliers are based in the United Kingdom. These establishments belong to Japanese and German groups. The arrival of Brexit may pose a serious problem. Similarly, the threat to employment is imminent. What can be done in this kind of situation?
Brexit and its impacts on the automotive industry!
Britain’s exit from the European Union will have disastrous consequences for employment. Indeed, the closure of the various production or assembly plants may exacerbate the unemployment problem in the country. Despite warnings from car manufacturers, about this impact, Brexit took place. The main reason why the British government did not take this option into account when making its decision is surely because most of the carmakers and equipment manufacturers are currently in the hands of foreign international firms. The days when the United Kingdom was proud of its automotive industry are over. Brands such as Mini, Land Rover, Range Rover, Jaguar, Bentley and Rolls-Royce are no longer controlled by the British, but by Germans, Indians… In addition, they are highly competitive with the giants of the automotive industry. Nissan, Toyota and Honda currently dominate this market.
According to analysts, nearly 800,000 jobs are at risk!
Did you know that the European Ford branch has been operating in England since the beginning of the last century? Its implementation dates to 1910. After the Brexit was announced, the firm sent a letter to its employees working on site. It mentions a preference for maintaining in the European Union. On the other hand, Ford fears an increase in its charges. Indeed, production costs and the various costs are likely to increase considerably. This could have serious impacts on competitiveness. The competitors will surely have a huge advantage. The problem is the same in other manufacturers.
Should we expect the plants to close?
The answer to this question varies from one manufacturer to another. While some are closing, others have planned to reduce their workforce to cope with the situation and maintain production. This will allow them to stay in the race and consider organizational reform to make up for losses and delays. For its part, Nissan has announced that the second generation of Juke will be assembled in England, which will boost everyone’s morale.