European supplier body, CLEPA, says it is “shocked” by the UK’s decision to split with Brussels after last week’s (23 June) referendum, which saw Britain vote to leave the 28-State strong organisation.
Against many predictions, the UK narrowly decided to exit the European Union (EU) by a margin of 52% to 48%, with a complex series of negotiations now being put in motion and led by the British civil service, which will aim to see a secession at some point during 2018.
Go deeper with GlobalData
“Of course we are shocked,” a CLEPA spokeswoman told just-auto from the component association’s headquarters in Brussels. “At the moment we are brainstorming. We don’t know when we [will] approach the policy makers, people don’t have precise plans, so a few days are needed.”
CLEPA national associations are due to meet in Madrid next week, with so-called Brexit high on the agenda and an emerging consensus being increasingly expressed no trade tariffs be imposed as a result of the UK’s decision to leave.
“Of course this is the most important thing for both sides,” added the CLEPA spokeswoman. “No tariffs. We will be discussing Brexit at this [Madrid] meeting. The national associations will report about what has happened…we can not avoid it.
“We were surprised. For the time we are saying [business as usual], but we have to see in the long run how the transformation will be organised.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The British government is planning for Article 50 [formal exit arrangements from the EU] for organisation of the departure in October [when the UK Conservative party may have elected a new leader and thus Prime Minister], not before that.”
Until Article 50 is invoked by London – and it appears the UK government is in no way anxious to start that process in any great hurry – supplier indications so far would seem to be to maintain the status quo.
The Berlin-based automotive and supplier body, VDA, notes German companies in the sector, including a large number of suppliers, have around 100 facilities in the UK and it is clear the association has no desire to see tariffs imposed by either side, given the importance of the British market.
The German automotive industry exported more to Britain than to any other country in the world and last year, 810,000 passenger cars built in Germany left for the UK.
In 2015 the British passenger car market reached a new record volume of 2.6m new cars, half of which sported a German group badge.
