BREXIT 4/4: Impact on production in Europe
- If the introduction of customs barriers and taxes upon entry in the EU is possible, the reciprocal custom barriers and taxes are equally important. The internal market in Britain represented 3 million vehicles (PC + LCV) in 2015 of which 80% were imported from the EU.
- The UK market is indeed highly dependent on the European production but the introduction of taxes and custom barriers upon entry to Great Britain could bring in significant financial flows. Nevertheless, the market is mainly composed of mainstream brands, the cost of a vehicle imported into the country from the EU would see a price increase which in turn could affect the level of the UK market. Britain could then turn to similar vehicles produced in other regions outside of the EU (Asia, America, Turkey) and implement free trade agreements with specific countries.
- For the EU, these 2.4 million vehicles sold in Britain in 2014 represented 13% of total EU production. The first vehicle exporter to Great Britain is Germany followed by Spain and France.
- In 2015, the main exporting manufacturers of vehicles from the EU to Great Britain are the VW, Ford, PSA and GM groups.
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