May 2019

NEWS The UK automotive sector has reacted cautiously to the extension of the Brexit process to the end of October 2019. As Aftermarket’s May issue was going to press, European leaders agreed to an extension to Brexit that would see the day of departure for Great Britain from the EU pushed back to 31 October. The last-minute delay was arranged just before the most recent exit date on 12 April, which itself was a push-back from 29 March. The Prime Minister was looking for a shorter delay, and the UK will now have to undertake European elections in May or face being ejected from the EU without a deal on 1 June. While this latest delay has been broadly welcomed by the automotive sector, there are still major concerns. Mike Hawes, SMMT Chief Executive commented: “While we’ve avoided a no deal Brexit, it is utterly unacceptable that, more than two years since negotiations started, industry still does not know what the UK’s relationship with the EU will be in the coming weeks and months. Uncertainty has already caused serious damage – car plants are on enforced shutdown, investment has been cut and jobs lost. This cannot go on. Government and Parliament must use this extension purposefully to take no deal off the table for good, and guarantee a positive long-term resolution that delivers frictionless trade. If they fail, we face yet another devastating no deal precipice on 31 October.” Wendy Williamson, IAAF Chief Executive, said: “The current Brexit situation is extremely frustrating as it continues to fuel uncertainty for our membership and their businesses going forward. Many aftermarket businesses continue to plan for every eventuality and the IAAF is supporting them in these activities where it can. The IAAF remains committed to ongoing lobbying activities both in the UK and European parliaments, with FIGIEFA, as the sector faces a number of challenges on vehicle connectivity, in-vehicle data access and of course on renewal of the Block Exemption Regulations, where discussions have now commenced.” Dave Garratt, GEA Chief Executive observed: “From the automotive sector's point of view, the worst case scenario has always been no deal. From that point of view the delay is good, as anything that puts off a no deal Brexit is good for the motor industry. It is good, and it is important that we get a deal.” As Dave pointed out, for different parts of the sector, there are different concerns and priorities: “Manufacturers definitely need a deal. Just-in-time car production plants rely on parts getting to them from all over Europe. The Mini plant for example, has components coming in from all over the place. They can't afford to have a crash-out. “If local garages are hit by anything, then it will be the impact of lower consumer confidence. Anything that causes uncertainty reduces confidence in people. As a result people are not going to spend their money so easily.” On the impact on equipment suppliers, Dave observed: “For my members, a no deal situation would be disastrous, as a lot of them bring equipment in from Europe, and not many have got the facility to stockpile. Anything that could cause delays at the border would be bad news.” The impact on the Pound in the event of a no deal Brexit could be a factor said Dave: “Just about all of my members are buying equipment from Europe. You have the possibility of the pound weakening enormously, so all the prices they have quoted to their garage customers suddenly need to be re-quoted. The damage that could be caused by a crash out could be pretty bad for people who are buying in equipment and selling it.” Dave added: “If you are a garage, then it won't affect you too much. I think most garages buy their spare parts from somebody like Euro Car Parts, who have already put plans in for Brexit and are stockpiling. They are buying the stuff in now while the pound is stable, and they are stockpiling it in Tamworth, so they will have enough stock to supply the garages should we have a crash out. The larger companies who will be affected are trying to put plans in place to cope with it. “ Dave concluded: “You can understand the attitude of people who are not in the industry who say let's get out of it, because they are sick of it. From a business point of view, we need to do it in a sensible way; otherwise it is going to affect lots of people.” 4 AFTERMARKET MAY 2019 www.aftermarketonline.net Forever delayed? Sector on Brexit latest Garages could be set to see a rise in the number of plug in cars coming through the door, as statistics show that the number sold in the UK rose by three quarters during 2018. According to new Motorparc data from the Society of Motor Manufacturers and Traders (SMMT), there are now 195,410 plug- in vehicles on UK roads, mirroring the increase in the models available. Overall ownership of alternatively fuelled vehicles (AFVs) increased by almost 30% last year, with more than 620,000 hybrid, plug-in hybrid, and battery electric cars now in use. At the same time, CO 2 emissions for the UK vehicle parc have fallen to the lowest on record, down 17.8% compared with 2008. The data also revealed that female car ownership remains at a record high, beating 2017’s level by 1.4%, with more than 12 million cars now owned by women. Cars registered to men also rose moderately by 0.5% to almost 17.9 million. Mike Hawes, SMMT Chief Executive, said: “Ever-more advanced in technology makes every new generation of vehicle more efficient than the last, and this is filtering rapidly from the new car market into the broader parc.” Statistics show plug-in surge