Our reporter? Fu Honglie

Part of the article quoted Reuters,

European Automotive News and Washington Post to report

At 23: local time on January 31st, Britain officially left the EU, becoming the first country in history to leave the EU. After Britain officially "leaves the European Union", an 11-month transition period will begin immediately and end on December 31, 22. During this period, Britain and Europe will start negotiations on future relations, and the British automobile industry, which mainly exports complete vehicles, also feels the pressure brought by "Brexit".

the negotiation of tariff policy has a great influence on the manufacturing industry. According to the data of the British Bureau of Statistics, the trade volume between Britain and other EU member countries currently accounts for more than 5% of the country's total trade volume. In the three years since the outbreak of the European debt crisis, the euro zone has been the main support of the British economy. At present, 8% of the vehicles produced in Britain are exported, and nearly 6% of them are exported to EU member countries.

According to the report of European Automotive News, according to the WTO rules, automobile manufacturers in Britain will face 1% import tariffs from the European Union, involving an amount of more than 5.7 billion euros every year. At the same time, this will also lead to an increase of 3 euros in the price of British cars sold in the EU.

Car companies embark on the journey of "Brexit"

In order to reduce costs, many car companies have chosen "Brexit" to get rid of the problems caused by the Brexit. According to Reuters's report on January 31st, BMW will postpone the development of the next-generation MINI model, because the company is committed to reducing the cost during the enterprise transition period. At the same time, it is more difficult for enterprises to make long-term investment decisions because of the uncertainty of trade policy between Britain and the European Union. "BMW will not make large-scale investment until there is a more certain negotiation result between Britain and the EU on the trade agreement," said Qi Puce, chairman of BMW Group.

At the same time, BMW said that MINI models are currently produced in two factories in Oxford, England and Bourne, the Netherlands. If the MINI models produced in Britain are exported to EU countries, BMW will consider transferring more production capacity to the Netherlands. In addition, BMW also plans to withdraw some of its engine production in the UK from the country.

Nissan has announced that it will cancel the production of the new X-Trail in the UK? SUV (China market name "Qijun") plan to reduce the investment risk in Europe. Toyota also revealed that considering the greater tariff burden, its production line in the UK will be terminated as soon as 223.

jaguar land rover, a British automobile company, assessed the risks brought by "brexit" in 219 by cutting the production of its factories in Britain. Ford, on the other hand, laid off some factories in Britain with the help of restructuring plan to reduce the losses caused by "Brexit".

According to the report of European Automotive News, analysts pointed out that due to the cost increase caused by Britain's "Brexit", among the car companies with production capacity in the UK, GM is most likely to transfer its production capacity to the European continent. At present, GM has a factory in Ellesmere Port in the northwest of England. LMC, an automobile market consulting company, pointed out in a report that the factory is likely to transfer its production capacity to Germany or Poland because of its high cost.

The supply chain may be impacted

After the Brexit, another big challenge for car companies is the supply chain problem. At present, among the top 2 automakers in the world, 18 have production plants in the UK. On average, a car needs to assemble about 3 thousand parts, and more than half of the parts used to make cars in Britain come from overseas. It can be seen that the British automobile industry is highly dependent on the trading system.

At the same time, after the Brexit, the new customs procedures will increase the customs clearance time of parts and affect the production efficiency. Once the parts are not delivered in time, it will be difficult for the assembly line of the automobile production factory to operate efficiently.

to sum up, Britain's "brexit" has brought great impact to the British automobile industry. In today's economic globalization, all links are closely linked, and once there is fluctuation, it will lead to a whole body. In addition, as more stringent emission standards in Europe have been implemented, all car companies are in the process of adjustment. From this point of view, the impact on the British auto industry is only budding.

This article comes from the author of Chejia, car home, and does not represent car home's standpoint.