Brexit: automotive suppliers to close factories in UK
German car supplier, Schaeffler, has announced it will close two plants in the UK because of the uncertainty Brexit is causing. Yesterday tyre manufacturer, Michelin, announced the closing of its factory in Dundee (Scotland).
Schaeffler employs actually 1.000 people in the UK, in three plants and two logistics centres. The plants in Plymouth (south) and Llaneli (Wales) will be closed, Sheffield (centre) remains and the two logistics centres of Hereford and Sutton will be united into one in Hereford. According to British media, this will cost 500 jobs.
The company says that the uncertainty about what is going to happen with Brexit has surely influenced the decision and that the fact that only 15% of the production in the UK is also sold locally was an important decision factor. The lost activities in the UK will be localized on other sites outside the country.
Just a day ago, tyre manufacturer, Michelin, announced that it will close its factory in Dundee (Scotland) by 2020. In this plant 845 people are employed and it produces mainly 16 inch tyres or smaller. In this part of the market the competition from Asian tyre manufacturers is very important while demand is slowing down, so Michelin is restructuring its facilities and Brexit isn’t facilitating things.
At the same time, the French Senate has approved a law project foreseeing that the French government can take any measure necessary in case of a hard Brexit. In December the French Parliament (Assemblée) will vote on this.
The law text will try to solve difficult questions, like the situation of British citizens in France after Brexit (at least 150.000 people are involved) and even more so the situation of French citizens in the UK that will come back to the Hexagon and claim their rights (pension, health care, etc.).
Export to the UK represents 3% of the French national income, 30.000 French companies are involved, and 4 million Britons travel every year to France.