Brexit Will Hurt Local Manufacturing But Consumers Will Get Cheaper Imported Cars

Concerns about Brexit continue to soar as it appears increasingly likely that the United Kingdom will have to leave the European Union without a deal.

Car manufacturers with production facilities across the UK have expressed serious concerns about a no-deal Brexit in recent months. Most recently, the chief executive of global parts supplier Unipart John Neill told audiences at the World Economic Forum that a no-deal Brexit could result in a “cascade of failure” in the supply chain, Forbes reports.

Financial analysts have been worried about Britain leaving the European Union for years, well before there was ever serious talk about such a move being made.

Economist Patrick Minford who doubles as a professor of economics at Cardiff Business School has been particularly outspoken about the impacts of Brexit.

Speaking in 2012, Minford said that the UK’s automotive manufacturing industry would be destroyed. Minford has continued to state this in the years’ since and in 2016, reiterated what he believes the impacts of Brexit will be.

“If we left the EU, it seems likely that we would mostly eliminate manufacturing, leaving mainly industries such as design, marketing and hi-tech,” he stated.

Not only could Brexit ruin manufacturing in the UK, it is also going to result in cheaper imports of vehicles built overseas. Minford says that this could raise living standards for those in the UK.

However, if Britons were to buy cheaper vehicles in greater numbers, traffic congestion would naturally increase. A recent study from INRIX and the Center of Economics and Business Research determined that traffic congestion in the UK will soon cost the economy £21.4 billion ($28.14 billion) a year.

“We now know that congestion will continue to have serious consequences for national and city economies, businesses and citizens in the years to come. If we think this problem is bad now, we are in for a terrible shock come 2030,” INRIX European director Matt Simmons said.

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  • Philip George

    There are people in the UK who would tell you they are okay with this happening. They are okay with the chaos and suffering it would bring them for a long stretch in their lives. Bunch of NUTTERS and sadly, there are quite a number of them. Shocking.

  • rover10

    If there is a ‘No Deal’ Brexit, some say it will be hard on the British. The EU needs to take care, as one weapon the Brits can use is to only buy British ( US and Commonwealth) made or grown products as a means of revenge for apparent EU intrangedence? Toyota, Honda, Jaguar and Landrover could gain increased UK market share, if companies only sanction UK built products for their approved lease vehicles authorisation? The UK exports less than it imports from Europe, and one market that could be hit hard is ‘gift flowers’ that are predominantly supplied by the Netherlands. Many perishable goods currently imported will eventually become homegrown once more. Retail retaliation could be one of the most damaging events for the EU, and that could be a real loss of income in the short term. Some suggest that growing displeasure within the EU members could only become more polarised after the UK’s departure?

    • Philip George

      First of all, it wold be illegal against International Law for the government to declare that people buy British or US or Commonwealth goods. Hope you don’t think this is the 16th century? Secondly, the UK claims to be proponents of free market so the declaration of “buy british only” would be ethically wrong and send a wrong signal to the international markets and investors leading to outward movement of investment from the UK. You don’t seem to know how these things work do you? It’s not Borough market or corner shop politics mate. Thirdly, almost everything the UK consumes is from imports. The EU protects consumers by barring unethically made foods especially chlorine washed chicken and GMO/hormone-fed meat from the USA both of which trigger and cause rapid growth of cancer cells in human bodies. The EU also bans bromated flour which also triggers and causes cancer in human bodies. Note that bromated flour is the normal choice of flour used in all bread and flour based foods from the USA. So essentially, you’re saying you’re prepared to eat and digest cancer triggering hormones and chemicals into your body from USA foods you’d have to consume in absence e of EU foods. You have to be some type of rabid lunatic to consent to that and that doesn’t surprise me, at all. If you crave all those USA/commonwealth foods and goods, then you should move to the US and let people who care for their health and environment to carry on here in the UK.

      • rover10

        Firstly, I did not say it would be government policy to suggest buy only non EU goods, as you rightly say, that would be illegal. Secondly, if the British people believe their democratic will has been ignored as consumers, they can make choices. Thirdly, any company can draw up preference lists, that action is not illegal either as any legal challenge would be very difficult to claim partality. As for the US/Commonwealth trade, again we can make choices, millions still smoke in the UK and you might want it totally banned, but again, even in restricted zones it’s still a free choice. Even obnoxious individuals as you are tolerated in a free state. Again, don’t underestimate the consumer’s power.

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