The uncertain Brexit may have mechanisms of action that are unlikely to be overcome by the British car industry that is already having problems.
In Great Britain, car production fell by over 15 percent year-on-year in February, down from the ninth consecutive month.
The British Automobile Manufacturers and Dealers Association (SMMT) said Thursday that 123,203 cars were manufactured last month in Britain, which is 15.3 percent less than a year earlier. SMMT primarily drew this back to the growing consumer uncertainty due to Brexit, but the shrinking markets were also playing a role, as did production disruptions.
According to a British trade union report, the number of cars produced in Great Britain was down to 1.52 million last year, down by 1.5 percent on the previous year. Recently, less cars were produced in 2013 by British car manufacturers.
Earlier, Portfolio.hu introduced Nissan's example, based on the comprehensive material produced by The Guardian , why it could bring an unbroken Brexi to their car industry.
Britain has been one of Nissan's largest European manufacturing base since 1986. There is also the European Research and Development and Planning Division, which is specifically engaged in product development activities tailored to the needs of the EU market. Last year, over 442,000 Juke, Leaf, Qashqai and Infiniti were made in their Sunderland plant. 85 percent of the components needed for manufacturing are purchased from Nissan, primarily from Europe, to assemble their finished vehicles using them.
However, in the spirit of Just-In-Time Production Management and Inventory Management, only parts of the factory are stored for half a day to save significant costs. This system is now sustainable, as the European Union Customs Union ensures the seamless and continuous flow of goods. However, if the British fall out of the European Union without agreement, and as a result, each item has to be cleared, the system just presented will collapse immediately.
(Source: hvg.hu / photo: pixabay.com)