U.K. Suppliers Cite Perils of “Hard” Brexit

Suppliers warn that the British auto industry’s advances over the past 20 years will be lost if the U.K. fails to secure favorable trade terms before it exits the European Union next spring, Reuters reports.

Talks to avoid a no-deal Brexit stalled again today over how to handle the border between the independent Irish Republic and the British-held province of Northern Ireland.

CLEPA, the European auto supplier trade group, notes that it took Britain’s auto sector 20 years to attract enough foreign investment to overcome the collapse of British Leyland and its Rover Group successor.

Carmaker group ACEA notes that carmakers in the country have been stockpiling parts and announcing temporary plant closures to ride out temporary disruptions caused by a “hard” Brexit. But the group warns that no amount of contingency planning will cover all the supply chain gaps likely if free trade between the U.K. and EU gives way to World Trade Organization rules.

BMW AG says a survey of its suppliers found only 10% of those in the U.K. and 41% of those in the EU consider themselves ready for Brexit. Most such vendors have little or no experience in clearing shipments through customs, the carmaker adds.