Toronto, Ontario — June 14, 2019– Next Sunday, the U.K. will mark the beginning of its last 100 days as an E.U. member state, though the country has yet to ratify a deal that could help protect some key industries–including the auto repair industry–from collapse.
Senior figures in the British auto repair industry have long feared that a “no-deal Brexit” will spell disaster for the U.K.’s auto repair sector. According to documents leaked to Business Insider from National Body Repair Association in March, it is likely that one-in-three facilities closing within a fortnight of the U.K. leaving the E.U. without a deal allowing for the unfettered trade of auto parts.
Since the early 1970s, supply chains providing parts and equipment to U.K. bodyshops have relied heavily on European suppliers and manufacturers. These trade networks have been developed under the long-term free trade agreement that exists across the E.U.’s member states.
Should the U.K. leave without establishing an alternate agreement, the equipment would be subject to tariffs set out by the World Trade Organization, and would likely collapse.
Unless the next Prime Minister, who will likely be former Foreign Secretary Boris Johnson, is able to reach a deal by October 31, the U.K. will automatically leave the E.U. Outgoing Prime Minister Theresa May’s own efforts to secure a deal ended in failure after Parliament voted against a proposal negotiated with Brussels.
With its access to domestic auto parts sources, Canada’s repair sector is far more resilient to trade disruptions. Even without easy access to auto repair parts, however, Canadian businesses tend to hold larger parts inventories on site. In the population-dense U.K., urban repair facilities often maintain minimal parts inventories to keep down property costs.
.
