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Brexit@Automotive

Are you ready for Brexit? 

Brexit has a significant impact on Germany's automotive industry. The Deloitte Brexit publications explain direct and indirect risks. Use our checklist to make sure that your company is well prepared for the Brexit process.

Overview of Automotive Brexit Publications

The United Kingdom‘s decision to leave the EU after a transitional period will have a far-reaching economic and political impact. Manufacturing companies located on the European mainland need to prepare for fundamental changes in the business environment and resulting challenges.

In this context, the Deloitte Brexit Briefings shed light on the core issues and risks of Brexit from an economic, strategic, tax and legal perspective, and provide guidance on the complex effects of Brexit and the Brexit process.

As part of this publication series, you will gain insights into various key topics including the automotive industry. This allows Automotive decision makers and executives to capture the complexity associated with Brexit and reduce uncertainty.

Brake Block Brexit - How a hard Brexit would impact the German automotive industry

In this edition, we analyse the impact that a hard Brexit would have on the British vehicle market. The focus is on how future WTO duties and ongoing weakness in the British pound affect German and European automobile exports. [English version] [German version]

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Hard Brexit and the Supply Chain - Effects on German automotive suppliers

This edition analyses how a hard brexit would hit German automotive suppliers. We aim to show the independence of the British and European automotive industries, and to illustrate the effects of the Brexit on revenue and employement of German suppliers.

We will make the impact clear by comparing developments in the British automotive market without Brexit against the effects of a hard Brexit at the time of the expected EU exit in 2019. [English version] [German version]

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Checklist: Are you ready for Brexit?

Short term

Administration:
  • In-house customs expertise available?
  • External service provider contracted?
Technology:
  • Technology roadmap exists?
  • Current technology to manage customs
    processes? Automated or manual?
  • If manual: Resources to ramp up for
    increasing volumes?
  • If automated: Can systems easily be
    adapted to changing regulations?
  • Transfer of IP to the EU?
Customs & Origin:
  • AEO certificate? Customs or Safety?
  • AEO application (min. 150 days)?
  • Local content/conformity regulations?
Production & Supplier Network:
  • Impact on production/inventory?
  • Create buffer stock and time buffer?
  • Re-routing of critical parts?
  • Change of UK (sub-) suppliers possible?
  • Consulted with (sub-) suppliers?

Medium to long term

Strategy & Process Optimization:
  • Optimized customs procedures (for
    inward and outward processing)?
  • Reviewed strategic market decision?
  • Adjusted pricing strategy?
  • Reviewed supply chain?
  • Relocation of production/operations?
  • Roadmap for transfer of employees/
    assets?
  • Optimized homologation?
  • Re-negotiation of contracts?