1,000 crash repairers could close following no-deal Brexit, industry experts warn

Leaked industry meeting notes show potential consequences for workshops relying on 'just-in-time' supply chains

1,000 crash repairers could close following no-deal Brexit, industry experts warn
Up to 1,000 garage repair companies could go bust amid a new deal Brexit Image: Bigstock.

Up to 1,000 vehicle repair companies in the UK could close within two weeks of a no deal Brexit, leaked documents have revealed.

According to an Auto Express report, minutes from a meeting of 17 industry figures last month described the “dire” consequences the UK leaving the EU without a deal will have on the sector.

There are around 3,000 vehicle repair companies in the UK, with a total of about 35,000 employees between them.

Steve Field, managing director of Page Automotive Accident Repair Group – which has 200 employees – claimed that up to 1,000 UK car repairers “could be on the brink of closing” within two weeks of a no-deal Brexit.

“Consequences to our car body repairers could be dire”

The leaked minutes, obtained by Business Insider, revealed the industry considers that: “If the import delays were prolonged – three to four weeks for example – without parts availability, the consequences to our car body repairers could be dire”.

The minutes also revealed that: “Many repairers would have run out of cash and face closure” by the third week following a no deal Brexit and, by week four, “even repairers with strong balance sheets would be in trouble”, some being forced “to raise cash or sell assets to survive”.

A number of repairers would be expected to “see an immediate impact on their revenue” within the first week following a no-deal Brexit.

In some cases, the dealerships where repairers source their parts have up to three days’ worth of stock at any one time, meaning parts do not need to be brought in from overseas for a repair, but such a scenario only applies for only three per cent of repairs.

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Home Page Forums 1,000 crash repairers could close following no-deal Brexit, industry experts warn

This topic contains 2 replies, has 2 voices, and was last updated by  Franco Di Lustro 2 months, 1 week ago.

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  • #172152 Reply

    O’pinion

    What a load of utter nonsense.
    You seem to be ignoring the fact that they would have a backlog of cars needing to be repaired.
    Have you never heard of renegotiating a contract because of extenuating circumstances?
    Have you never heard of banks? They loan you money when you have cash flow issues….
    Complete twaddle. If a body shop is in a financial position that leaves it vulnerable to such a scenario as you describe then it was destined to fail soon anyway because of either bad management or oversupply of repairers.

    #172154 Reply

    Franco Di Lustro

    A no deal Brexit would be disastrous. nearly all of industries in the UK rely on just in time sourcing of parts. Its not bad management its exceptional management done to reduce costs for the most part. My brother works for a large pharmaceutical company, He is working towards a no deal Brexit the worst possible outcome.
    He is having too stock pile chemicals, find location he can hire to store these chemicals for future use. When I spoke to him last he had just secured a ware house for storage costing his company £80,000. The company he works for use to be British but was brought out by a German company years ago, I won’t be long before these company’s more away from UK because of increasing costs and red tape.

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