Industry reacts to Brexit vote

The AA has told UK motorists that the result of the EU referendum will have little immediate impact on them, apart from fuel prices possibly creeping up during a period of instablity.

Britain voted to leave the EU last night, with Edmund King OBE, AA president, spelling out what it could mean for UK drivers in the future.

He said, ‘While the fallout of the referendum result will continue to be discussed, there are lots of points drivers will want to see resolved. As the voice of the motorist we will ensure that their views are heard loud in clear throughout the negotiation process.
‘Driving abroad anything can happen but we would like to reassure our members with AA European Breakdown Cover that they will continue to get a first class service coordinated from our control centre in Lyon.
‘Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor’s prediction that leaving the EU would lead to fuel duty increases. We will oppose duty increases and continue to monitor the situation on behalf of our members.’

 

Glass’s, director of valuations, Rupert Pontin reacts to Britain’s momentous decision to leave the EU, saying a bumpy road could lead to a more prosperous future.

He said, ‘This is an interesting result that sees the UK very much embark on a new chapter that is largely unwritten. If the Brexit voters are correct in their thinking, it could create greater prosperity for the country in the long term but, over the next few months and years, the road is likely to be very bumpy.

‘Markets will be affected, as will the value of the pound, and we expect to see consumer confidence tail off until the view of the way forward becomes clearer.

‘How long this will take is difficult to predict. For the motor industry, all of these developments are very likely to have negative effects including a period of instability for new and used car sales, as well as an increase in pre-reg activity and downward pressure on values.

‘There is also likely to be further political instability as a result of the referendum outcome, both at home with the ruling government and across Europe as the EU comes to terms with the decision, which will create further uncertainty. Whatever the outcome in the longer term, there are plenty of challenges now facing the motor industry and the UK as a whole.’

Meanwhile, Sue Robinson, director of the National Franchised Dealers Association, which represents franchised car and commercial vehicle dealers in the UK, said, ‘Following the result of the vote the NFDA will work with our members and their manufacturer partners to help determine the correct next steps.

‘The UK is the second largest car market in Europe, with £35.3 billion worth of cars imported to the UK from Europe of which over 820,000 are from Germany alone, 20% of their production.

‘We urge the UK government to swiftly negotiate a trade deal across Europe and the rest of the world and to secure currency stability, such that there is a level playing field for our members to operate in. Clearly it is as important to European importers as it is to the UK market that a deal is put in place very quickly.’