Repair Companies in Peril as Brexit Talks Stall

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March 11, 2019—Hundreds of European-based collision repair companies could collapse within a few weeks of a no-deal Brexit in the United Kingdom, according to a report by Business Insider. Brexit, of course, refers to the withdrawal of the United Kingdom from the European Union.

If the European Union is left without a deal, it could have dire consequences for the auto industry, with nearly 1,000 UK companies closing within two weeks, according to leaked notes taken at a recent meeting of industry leaders. The notes warn that “many repairers would have run out of cash and face closure,” and others would need “to raise cash or sell assets to survive” just weeks into a no-deal scenario.

The United Kingdom has recently seen Brexit talks reach an impasse. The UK collision repair industry, which employs an estimated 35,000 people in England, relies heavily on car parts imported through “just in time” supply chains.

If border checks arise as a result of Brexit, it’ll become more difficult for collision repair companies to get ahold of the parts they need to complete repairs on schedule.


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