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The Brexit deal may not completely fix the UK of future risks to the domestic economy.
After that the same Boris johnson in an interview with Sunday Telegraph has expressed disappointment at the limits of the agreement on financial services, according to some analyzes also the Automotive section it could be seriously affected by industrial production and consequently job losses.
The achievement of an understanding between the UK and the EU you run the risk of being too late and therefore it might not be enough to save the turnover around automotive sector in the United Kingdom.
Brexit: the risks for the UK automotive sector
In fact, several automakers have announced in recent months the factory closure and canceled new production plans for its models.
A decision made when there was still uncertainty about the possibility of accessing European common market by UK-based companies.
Furthermore, even with the negotiations that regulate the new commercial relations between London and Brussels, some manufacturing companies question the advisability of continuing the assembly processes on British territory.
Despite the possibility of exporting products to European countries, many of them would still have to face new costs, for example in terms of customs declarations, which would lead to an increase in distribution costs.
How much is the car industry worth in the UK?
Companies with little room for spending could therefore decide to leave the British borders, causing a great impact on the whole. UK economy.
The automotive sector currently has a volume of 860 thousand people employed, of which more than a fifth work in factories. In addition, in the last year the sector represented the 13% of total national exports for a value of 42.4 billion pounds, worth more than 46,600 million euros.
At the same time, there has been a steady decline in the domestic market for the past three years, with a collapse of 31% recorded since the start of the coronavirus pandemic crisis until November.
Automakers willing to close their factories
Meanwhile Nissan canceled plans to make new SUVs in the north of England and Sling has announced the closure of its only factory in Italy. Toyotainstead, it has confirmed production of its hybrid models for the time being at factories in Wales.
BMW me PSA welcomed the agreement signed with the European UnionHowever, he argues that he needs time to study the possibility of supporting new investment in the UK.
As industry experts revealed, it will be crucial for the UK at this point to transform its own supply chain, with the aim of becoming a global player in the production of electric vehicles.
