As Britain’s date with Destiny looms closer, fears of a different kind are gripping a segment of the local auto industry. These concerns are the real threat of up to 1000 of Britain’s 3000 strong auto repair centers closing shop for good, in the event of a no-deal Brexit.
The UK leaving the EU could cripple its auto repair sector
Industry experts say most of the 3000 auto shops, employing some 35,000 individuals, stock up only 3 days of spare parts, on the optimistic side. These shops stay afloat because of readily accessible “just-in-time” supply of parts. This is a constant supply chain of auto parts pouring into the UK on a daily basis and that arrive just in time for urgent repairs. Therefore, border and import delays, following restrictions arising from a no-deal Brexit , could significantly cause delays in repairs, and potentially put at least 33% of these shops out of business. The prognosis is that the auto shops will run out of cash, and no longer be solvent. The strong possibility could cost the UK about 10,000 plus jobs.
Furthermore, the rest of the centers are not assured safe berths either. Although it is speculated that 1000 shops could close shop in two weeks in the worst case, a lot more could face a similar fate just a bit afterward, running out of cash and closing up by the fourth week without parts to execute customer repairs. Only the very biggest repair centers or franchises would expectedly weather the storm.
More than 10,000 auto repair jobs could be at risk soon
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The alarm followed leaked minutes from a meeting of 17 industry figures last month which predicted “dire consequences (that) the UK leaving the EU without a deal would have on the sector”
Only 3% of current auto repairs in the UK can be done currently without parts sourced from abroad.