So, you’re driving one of the 1.7m vehicles built in the UK in 2016; chances are the power steering was manufactured in Germany; the ECU’s came from Romania; and the shock absorbers from Poland. Around half of the 30,000 parts in an average British made car comes from somewhere else. (Campbell & Pooler, 2017)
Something that was once seen as an incredible feet of trade deals and logistics management before Brexit now becomes a potential problem for the millions of British made cars as well as the used parts market. As Mike Hawes, Chief Executive at the Society of Motor Manufacturers and Trades states, ‘The cost of our production would increase more than our competitors. British competitiveness would be undermined. The cost of cars for British consumers could increase.’
There are obvious implications of this on the car parts sector as well, with huge backlogs on some new parts such as Zafira Tourer doors, insurance bodyshops are having to look at alternative measures to get the part and fulfil the repair. The main method is to use second-hand car parts or ‘Green Parts’.
‘We have a huge dependency on Europe; you simply can’t buy some components in the UK.’Ralph Speth, Chief Executive of Jaguar Land Rover
‘Of those 30,000 components in modern vehicles, each one may contain 30 sub-components and have passed through 15 countries during it’s production’, according to Clepa, the European supply chain organisation. (CLEPA, 2017). A no deal could mean tariffs (on average 3 or 4% for automotive parts under WTO rules) and customs checks could mean reorganising supply lines to ‘just in time’ schedules. (Pooler, 2017).
The big question for body shops is how it will affect the supply of new parts for themselves; potentially there could be big changes in delivery times if the manufactured parts are created outside of the UK, such as items relating to steering.
So where do the The Green Part Specialists come into all of this? Well, with the continuous uncertainty surrounding Brexit the struggle to source new parts will no doubt continue.
With typical savings of up to 60%, we are a new initiative available to Insurer’s body shop networks to help them save on their repair costs through a used/green parts scheme.
By using our online requesting portal or mobile app you can make a request as easily as ordering a pizza and receive a response within 30 minutes.
Insurance companies can save thousands on repairs to vehicles as well as potentially saving a vehicle from being written-off entirely. Thus increasing their customer retention and loyalty. And with the influx of social media campaigns, such as #earthday and #nationalrecyclingweek there has never been a better time to go green and add an environmental impact to your Corporate Social Responsibility.
Interested? Take a look at our website for further information.
Campbell P & Pooler M, ‘Brexit triggers a great car parts race for UK auto industry’, The Financial Time, https://www.ft.com/content/b56d0936-6ae0-11e7-bfeb-33fe0c5b7eaa, (Accessed 16/01/2019)
CLEPA, ‘What we do’, CLEPA. https://clepa.eu/what-we-do/resources/news/, (Accessed 16/01/2019)
Pooler M, ‘Brexit adds to challenges facing car parts suppliers’, The Financial Times, https://www.ft.com/content/44589a00-582d-11e7-80b6-9bfa4c1f83d2, (Accessed 16/01/2019)