In a crazy turn of events, the U.K. has voted to leave the European Union, leading to a situation the world is calling “Brexit.” The implications of the decision to leave are already being felt. Prime Minister David Cameron, who was against leaving the Union, has reportedly announced his resignation, leaving his successor, who is unknown at this time, to lead the path of Britain as it leaves the EU. The big news, however, is how Brexit will affect the automotive market, which as you may or may not know, has grown dependent on the tariff-free importing and exporting that came along with Britain position in the EU.
To put it bluntly, all the trade agreements between manufacturers that build cars inside the U.K. and the other countries within the EU. have been thrown into chaos. For those of you who don’t know, a lot of manufacturers like Ford, Opel, Mini, Rolls-Royce, and even Nissan all build cars in the U.K., but are now concerned about the long term as it may become more expensive to import cars into the EU. from Britain. According to Automotive News, BMW, the brand that owns Mini and Rolls-Royce, has said that there will be a “period of uncertainty.” “We cannot say what this means for our U.K. operations until those future regulatory and legislative arrangements are agreed.”
Opel, who happens to be GM’s arm in Europe, claims that it is important that its U.K.-based Vauxhall division remains part of the Euro economic area. Ford has yet to say much, but it has three plants in the U.K. that build engines and transmission. It did say, however, that it will do what is necessary to remain competitive in Europe. That’s not all there is to say, though. The whole Brexit situation has already had huge impacts on the stock market, and the U.K.’s largest automaker by volume is already feeling a huge burn.
Continue reading for the full story.
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