Advertisement

No-deal Brexit could close up to 1,000 car repair companies

Crash repair centres rely heavily on ‘just-in-time’ supply chains, which face jeopardy if extra border checks follow a no-deal Brexit

Car insurance damage check

Up to 1,000 vehicle repair companies in the UK could close within two weeks of a no deal Brexit, according to leaked documents.

Minutes from a meeting of 17 industry figures last month described the “dire” consequences the UK leaving the EU without a deal will have on the sector.

Aston Martin announces £30m Brexit contingency fund

There are around 3,000 vehicle repair companies in the UK, with a total of about 35,000 employees between them. The industry relies heavily on ‘just-in-time’ deliveries, which it is believed would be crippled by new, longer border checks.

Advertisement - Article continues below

Steve Field, managing director of Page Automotive Accident Repair Group – which has 200 employees – claimed that up to 1,000 UK car repairers “could be on the brink of closing” within two weeks of a no-deal Brexit.

The leaked minutes,obtained by Business Insider, revealed the industry considers that: “If the import delays were prolonged – three to four weeks for example – without parts availability, the consequences to our car body repairers could be dire”.

Driving in Europe after Brexit: everything you need to know

The minutes also revealed that: “Many repairers would have run out of cash and face closure” by the third week following a no deal Brexit and, by week four, “even repairers with strong balance sheets would be in trouble”, some being forced “to raise cash or sell assets to survive”.

A number of repairers would be expected to “see an immediate impact on their revenue” within the first week following a no-deal Brexit.

In some cases the dealerships where repairers source their parts have up to three days’ worth of stock at any one time, meaning parts do not need to be brought in from overseas for a repair, but such a scenario only applies for only three per cent of repairs.

Check out our round-up of the best car insurance companies here...

Advertisement
Advertisement

Most Popular

Visit New Volkswagen Golf GTI ride review
Volkswagen Golf GTI Hatchback

New Volkswagen Golf GTI ride review

Hi-tech new controls aim to keep legendary Volkswagen Golf GTI hot hatch’s driving dynamics at the top of the class
12 May 2020
Visit VW to pay customer £25,000 following new Dieselgate ruling
Volkswagen

VW to pay customer £25,000 following new Dieselgate ruling

Volkswagen has lost a landmark court case in Germany and must now pay significant compensation
26 May 2020
Visit New facelifted BMW 5 Series takes aim at Audi A6 and Mercedes E-Class
BMW 5 Series

New facelifted BMW 5 Series takes aim at Audi A6 and Mercedes E-Class

The BMW 5 Series has been updated with styling and efficiency tweaks, while a new 545e performance plug-in model joins the line-up
27 May 2020