Up to 1,000 car repair companies could collapse within 2 weeks of a no-deal Brexit
Up to 1,000 car repair companies could collapse within two weeks of a no-deal Brexit, according to leaked minutes from a meeting of leading industry figures seen by Business Insider.
Demonstrating how a lack of trade deals would put a sledgehammer to supply chains the meeting notes show industries which rely on “just in time” deliveries could be decimated if the UK crashes out of the EU without a deal.
The UK vehicle crash repair industry — which is comprised of around 3,000 companies and employs an estimated 35,000 people nationwide — effectively needs to work to a one repair in, one completed repair out system, which would be impossible if new border checks emerge.
The minutes from the meeting reveal that any slowdown of car parts entering the UK at the border would force thousands of companies to cancel repairs, leaving them without cash to stay afloat.
They state: “If the import delays were prolonged – 3 to 4 weeks for example without parts availability, the consequences to our car body repairers could be dire”.
By week three, “many repairers would have run out of cash and face closure,” and by week four “even repairers with strong balance sheets would be in trouble” while some would have “to raise cash or sell assets to survive.”
The meeting was told that some companies “would see an immediate impact on their revenue income” within one week of no-deal, and “repairers with very tight cash reserves may already be in trouble”.