Auto electrical specialist WAI has extended its UK warehouse by a massive 40 per cent, as the business boosts its stockholding for UK customers. The extension, at WAI’s Bognor Regis UK headquarters, will see more racking and a greater investment in UK logistics, as the brand continues to prove popular among motor factors and workshops.
Test specialist Horiba Mira expects the new ‘rules of origin’ clause will drive a surge in demand for development and testing of EV battery packs.
It comes as last month Aston Martin boss and Nissan planning chief Dr Andy Palmer issued a warning to the UK government that the Brexit trade deal, alongside ambitious plans to ban the sale of new petrol and diesel cars by 2030, presents a risk of “crippling tariffs” for the UK automotive industry unless the sector invests heavily in domestic battery production for electric vehicles.
To mark the UK’s exit from the EU, the EU flag has been removed from all UK driving licences and number plate designs, with the first batches issued from 1 January 2021. While existing licences and number plates will still be valid, the new versions will be issued to everyone renewing a licence or getting one for the first time.
The Road Haulage Association (RHA) has reported that exports to the EU going through British ports in January fell by 68 per cent compared to the same month last year. An article in the Observer newspaper said that the fall was mostly down to problems caused by Brexit.
The effects of the coronavirus and Brexit have led to an increasingly severe shipping bottleneck. The inevitable result of all of these factors is price increases. Tyres & Accessories spoke with Micheldever Tyre Services (MTS) wholesale director Graham Mitchell in order to find out more about what this means for the tyre retail sector.
Getting right to the point, are prices going to go up in 2021? “Undoubtedly,” was Mitchell’s immediate and definite response, with the wholesale director pointing to the three main factors behind the current and forthcoming price hikes as well as the different variables associated with each: “Containerised cost of product coming out of the far east…that’s not doubled, that’s quadrupled…a significant on-cost not to be underplayed…and then you’ve got a currency element that’s forcing manufacturing costs up as well.” The good news is that wholesale sources are confident that the containerised element is temporary, but the same cannot be said about other factors.
The latest temporary closure of Honda’s Swindon plant because of parts shortages could be the “tip of the iceberg” for new car supply issues in 2021, the Vehicle Remarketing Association is warning. Chair Philip Nothard said that the problem, believed to be caused by poor availability of semiconductors, was potentially a sign of things to come from all manufacturers.
Just before Christmas, the UK Government and the EU announced that they had thrashed out a no-tariff trade deal. Negotiations went down to the wire, but, a mere four and a half years after the UK voting to leave the EU, agreement was approved by both sides.
Back in April, Tyres & Accessories spoke to leading supplier of freight forwarding services to the UK tyre sector, Maritime Cargo Services about the perfect storm of circumstances complicating life for tyre importers. Then it was difficult to anticipate the logistical problems the industry would face by the end of the first quarter – at least far enough ahead to sidestep the issues entirely. Even armed with the expectation of disruption, the pressure has built at British ports throughout the year, especially in the last quarter as Covid began to spike again. As a result, Honda UK’s suspension of production became a high-profile symptom of the catalogue of issues causing bottlenecking and ultimately delays in the supply chain. With the end of the Brexit transition coming amidst the second spike of Covid-19 transmissions on 31 December, T&A asked MCS again about what difficulties distribution businesses need to plan for this winter.
BM Catalysts, Europe’s largest independent manufacturer of high-quality aftermarket catalytic converters, DPFs and front pipes, has launched a Brexit resource via its website https://www.bmcatalysts.co.uk/brexit/ providing practical help, relevant information, and useful resources to help and reassure customers.
After weeks and months of mounting pressure on UK ports, the automotive industry is showing visible signs of strain. Specifically, Honda UK has halted manufacturing at its Swindon factory because it can’t get the right parts in-time to continue production. General UK tyre supply is likely to be impacted too.
According to figures released by the Society of Motor Manufacturers and Traders (SMMT), UK car manufacturing output fell 18.2 per cent in October. 110,179 units left UK factories during the month, 24,490 fewer cars than were made in October 2019, with the impact of coronavirus and fresh lockdowns at home and overseas subduing demand in many key markets.
Over the past weeks, the National Franchised Dealers Association (NFDA) has written to HMRC and a number of MPs to highlight that under post-Brexit EU VAT rules, the sale price of a significant proportion of used vehicles in Northern Ireland (NI) will be subject to a 20 per cent increase for stock purchased in Great Britain (GB). NFDA has urged HMRC to resolve the issue before the end of the year to avoid a major impact on NI and GB vehicle dealers as well as consumers.
In May, analysts reported that Q2 European trailer registrations were 44 per cent down and that full-year 2020 trailer registrations were set to be down north of 28 per cent. Now however, the same analysts – Clear International – are echoing the findings of other indicators and suggesting that things will turn out slightly better than expected this year.
The Society of Motor Manufacturers and Traders (SMMT) has again urged both sides to re-engage the Brexit negotiation process with vigour in order to achieve a satisfactory deal. Bringing its latest calculations to the table, the industry association stresses that ‘no deal’ is a high stake gamble not only for the automotive sector but also for hopes of a green recovery from the coronavirus crisis.
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