What Brexit mean for Europe?
Brexit Will Hit Hard British Auto business in the short term.
Brexit Will Hit Hard British Auto business in the short term.
After two years Although Normality would be back, the report said Rhys said anyway, Prosper industry.
However, the net effects after short term fall would be relatively benign.
The British car industry is likely to be severely affected if the referendum June 23 vote to leave the EU, but the impact is likely to be exhausted within a few years.
This is the view of the research BMI, which said in a report that airlines, agro-industry, home builders and retailers would also be among the hardest hit.
Everyone sees catastrophic for the automotive industry if the verdict is Brexit the term shorthand for Britain decides to leave the E U.
Garel Rhys, professor emeritus of economics of the automotive industry and research director of the automotive industry to the Cardiff Business School, said anyway, the future of the British car industry appears healthy.
It might not be all sweetness and light, but even if the UK is outside the EU, the powerful hitters in Europe will secure car industry and car manufacturers and finance will still operate Britain is not in the interest of anyone not to do it, Rhys.
Shortly BMI Research said Brexit would be a problem, but it wouldn t actually last very long.
Brexit lead to a worsening of their sales to the automotive industry and balance sheets up to two years after the June referendum, however, net effects after short term fall would be relatively benign, the research BMI in a report.
In the long term, as the British pound found his foot and uncertainty on trade and investment agreements with the E U is gradually resolved, we expect the net effect to balance, BMI said research .
But the short-term damage to the supply chain could be imposed if tariff barriers are erected between the EU and Britain, among other negative investment would be deferred over a period of two years, but the positive side, if the value of the pound sterling depreciated sharply, UK assets become more attractive to foreign investors.
Weaker sterling, would also lower the exports more competitive, so that any negative impact on possible curbs on export sales in Europe would be offset by better access to growing markets outside the E U.
Sales growth in non-E U market consistently exceeded sales growth in EU countries in recent years In fact, the share of exports from the UK to EU destinations increased from 53 6 percent to 5 percent for 42 products and 73 percent to 60 9 6 percent for services between 2005 and 2015, respectively, the IMC said the search.
Rhys said UK car market Cardiff Business School is the second in Europe behind Germany, and has a trade deficit of 26 billion, so if it decides to leave the EU now is so valuable current participants will be desperate to make -you continues This effectively means free trade will continue, he said.
In 2015, EU car production reached 16 million vehicles, with 1 6 million in Britain's annual sales in Britain were more than 2 million exports Britain 80 of its production, led by Toyota Nissan and Honda, and imports 85 of its new cars, BMW, Mercedes, Audi, VW, Renault and Peugeot FCA first.
According to Rhys, German companies and belonging to German production accounts based on nearly 40 of the UK market, more from the two British plants themselves.
The UK car market is larger in number to the German economy that it is the British, Rhys said in an interview.
Feat for a disaster Rhys said if automakers to report a possible disaster is pretty slim.
This is based on the fear of uncertainty, trying to reduce the unknown but they made a proper risk assessment, if output is not very different to stay in, says Rhys.
This n t square with the opinion of many political and business leaders suggests that if the British vote to leave the E U chaos will follow.
BMI research said after large following short-term difficulties Brexit, the British car industry could prosper in the long term.
Because non-E U markets are growing faster than those of the EU, would help Britain in places like China, where, assuming the market share of the UK for goods and services remains stable, we expect the share of China's exports from the UK to exceed that of France and almost catch up with Germany's by 2025, the IMC said the search.
Brexit measurably negative would have a negative short-term impact on the British measurable demand for components and finished vehicles imported from the E U, but for more than two years, the positive and negative effects on the E U would more balanced.
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