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Road Cafe assessment: whether the impact on China? Europe leads the global automotive British off unrest

last year, the domestic auto industry as a whole down, it can be said of poor automotive industry worldwide automobile sales performance, but with the arrival this month of November we can also be found, relative to the overall changes in the car’s overall sales worldwide also not much warmer.

As the United Kingdom quot; off European quot; repeatedly delayed, but also to present to a marked decline in sales of the British car industry has cast a thick shadow. We all know that if the British can smoothly quot; off European quot ;, then Britain’s relationship with the European Union belong parted ways, economic and trade, mutual dependence is very high, once the British withdraw from the EU, not only damaged the UK, EU other member states will also suffer huge losses increased transaction costs. So, off to Europe after the United Kingdom, the British auto industry there is a big uncertainty.

What is the impact for the UK automotive industry

have to admit, is a manufacturing country worldwide regarded as the UK automotive industry, more luxury brands Land Rover and a symbol of the spirit of craftsman-built luxury Rolls-Royce brand, if Britain off to Europe, and that a lot of brands for the automotive industry due to the cost of production or the car is too high, not suited to the needs of the market, which was acquired. However, even after the brand was acquired, origin is still the UK.

Therefore, in terms of the current situation, the United Kingdom quot; off European quot; after the biggest factor is that the British economy will be very uncertainty, after all, after the removal European industry as a whole regardless of import or export to Britain will have impact on trade, in other words, the United Kingdom after take off in Europe, the UK and the EU for import and export costs would greatly improve, and the United Kingdom need to re-trade negotiations with other EU countries, thereby increasing the cost of imports would lead to price increases, cost increases will lose export trade competitiveness.

It is also because this uncertain factor, the British car industry has changed, according to foreign media reports: Europe off by uncertainty and global trade tensions, the first half of British car production fell by nearly 20 percentage, total exports fell by 15.6 Percentratio. Meanwhile, the British car manufacturing industry has more status consecutive month of negative growth appears.

a large number of car companies to opt out of

impact on the industry have great uncertainty, but for vehicle manufacturers and auto parts manufacturers, their production, manufacturing, and procurement there have been a larger decline, affected by the overall auto market downturn, sales in the UK car market has a very significant decline, reduce the associated investment, many vehicle and parts manufacturers plan to withdraw from the United Kingdom.

a number of British car manufacturers have decided to move production bases outside the United Kingdom, and began to prepare to cut the number of British workers. In February, Honda announced plans to close its southwest England Swindon factory in 2021, and soon after, Nissan also announced it canceled production of the new X-Trail in the British plan, while in October 31 and November 1, BMW MINI also announced the closure of the factory is located in Oxford, southern England, in order to deal with the British trade in the absence of off-European agreement to leave the EU and may cause interruption.

Therefore, for the British car industry, as well as other brands of exit related closure of the factory, to the already fragile markets, and worse, in fact, now the British car manufacturing industry has been much larger than that, its current mostly to other European countries car brand, so these two uncertain factors may also lead to changes in the whole of the UK automotive industry. Impact

of the Chinese automobile market

Although, for the British car, the uncertainty in Europe may be off the British car industry produced a total of devastating, but for China’s auto industry , its impact will not be great, on the one hand, due to the Chinese auto companies in the UK less layout, there has been import and export tariffs between China and Britain, so off European influence in the UK is not significant for Chinese auto companies. On the other hand, domestic car manufacturers in the UK and do not have much of the layout, even if there are export models, but basically consumed in the United Kingdom, so off Europe is also almost no impact on their business.

At the same time, due to the Chinese carHuge industry, its Chinese brand’s home country is still really, for only a small part of the layout in UK businesses, it will not be greatly affected, and, with the OEMs and auto parts production capacity will be gradually outward transfer in and out, but for other brands, the Chinese still have a lot of market power, so if off successfully in Europe, these companies are likely to be fought in China, therefore, is for the Chinese auto industry will usher a favorable opportunity.

wrote at the end of the text

can be seen, whether the UK quot; off European quot; after the trade relations with the EU is not uncertainty, the current situation is not very optimistic, after all, for the United Kingdom itself, in order to achieve zero tariffs it is almost impossible, and for car exports, which also makes the already relatively high models, the price will be further enhanced in the original basis for local products, the products will lose competitiveness.

So off to Europe is not a good thing for the British car industry, but more conducive to the development of China’s automobile market and to attract a large number of parts and production plant in China, in the face of the automobile industry the pattern of the changing times, if China can seize the opportunity and sustainable development, then, for the Chinese automotive industry, the pace of power from traditional auto industry, will be getting closer.

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