Impacts of Brexit on the Auto Industry

Corporate Finance & Restructuring | Economic Consulting

October 30, 2018

FTI Consulting is an independent global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes.

With dedicated teams in key political and commercial capitals, FTI Consulting is well placed to help you navigate your Brexit challenges and manage commercial risk. Our Brexit Leadership team outlines the key issues facing the auto industry and what companies should be focusing on amidst the political uncertainty.

The Auto industry has already been facing multiple issues impacting performance:

EU Economy

  • Slow economy
  • Car sales fell 6.6% YOY for the first time in 5 yrs.
  • Changing mobility needs / demographics
  • Disruptors taking market share
  • New business models for OEMs
  • Investing in alternative powertrains
  • Advent of electronic vehicles

Paris Agreement

  • Increased momentum towards clean energy following COP21
  • Transport accounts for nearly one quarter of all EU Emissions, with 70% of those emissions coming from road transport
  • EU decarbonisation targets of 60% by 2050
  • Societal, economic, and accessibility implications

Emissions Scandal

  • Negative media coverage
  • Reputational and consumer trust issues
  • Increased NGO scrutiny and links to premature deaths
  • Parliament created an ad hoc Emissions
  • Measurements in the Automotive Sector (EMIS) Committee
  • Major cities mobilising to ban diesel cars in city centres

Avalanche of Regulations

  • A European strategy for low-emission mobility proposed
  • Post 2021 CO2 standards this year
  • New car-type approval
  • New CO2 and NOx emissions test
  • Other related regulations, such as the Clean Vehicle Directive

More Info

Share this page