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In this article Patricia Godfrey of CMS examines the challenges facing
the once buoyant automotive sector. The main points arising from this article are as follows:
The media is awash with news of concern, decline and uncertainty in the automotive sector. Falling domestic demand and lack of clarity around Brexit are two key factors.
Confusion over diesel taxation and wider air quality plans are impacting domestic demand at a time when unprecedented technological advances are leading to growth in demand for electrically operated vehicles with driverless cars on the domestic horizon.
The lack of clarity surrounding Brexit could have a profound impact on the sector where much of the legal and regulatory framework derives from EU Regulations and Directives.
Decreasing domestic demand and the prospect of exports faltering if a cohesive Brexit plan does not emerge imminently means banks, OEMs (original equipment manufacturers), Tier 1 and 2 suppliers and a range of distributors need to be increasingly alert
and ready to deal with distress and, at worst, failures in the sector.
Click here to read the full article.
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