The constant changes and announcements of the Brexit deal has left us all confused as to what will actually happen when we leave the European Union. The deadline Is set for March the 29th yet there is still no actual plan of how the UK will be leaving and the terms are yet to be agreed. Theresa May doesn’t show any indication of getting any closer to getting a deal finalised and leaving without one may potentially be an option.
If the UK does end up leaving without a deal the European Union will cut all ties immediately, with no agreement at all in place. Some economists has warned that it could mean businesses have to pay more to send their products to countries in the rest of the EU. The government has planned for and is preparing for a no deal Brexit and has told businesses to do the same.
There is up to one thousand companies in the UK vehicle repair Industry which could potentially collapse within two weeks of a no deal Brexit, with many more forced to close within a month. This news has come leaked from a meeting of leading industry figures seen by the Business Insider.
The UK vehicle crash repair industry — which is comprised of around 3,000 companies and employs an estimated 35,000 people nationwide — relies heavily on car parts imported through “just in time” supply chains. Repairers must complete their jobs quickly this is to ensure they have enough courtesy cars for customers. They work on a one repair in and one completed repair out system. However once the Brexit deals are done new border checks will emerge which will make the process longer for repair companies as they may have to get wait longer to get hold of parts they need to complete repairs on time.
The minutes from the meeting revealed that any slowdown of car parts entering into the UK will force thousands of companies to cancel repairs leaving them without cash to stay afloat. A meeting of 17 industry figures last month concluded there would be “dire” consequences for thousands of privately-run companies, and their tens of thousands of employees, within just a few weeks if the UK leaves the European Union without a deal.
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