Fleet Assist is working in tandem with motor manufacturers to allay any fears among its customers and its extensive network of more than 5,000 garages that a ‘hard’ Brexit could result in vehicle parts supply disruption.
The leading supply chain management specialist to a significant number of the UK’s major contract hire and leasing companies collectively operating more than one million vehicles and rental firms, has compiled a report based on information supplied by almost every motor manufacturer.
Regularly updated, the report reveals on a manufacturer-by-manufacturer basis that most have implemented contingency measures to safeguard against all eventualities, a ‘hard’ Brexit – or ‘no-deal’ Brexit – could trigger.
Fleet Assist has made the information available to all of its customers so they can inform their end-user fleet clients, and allay any potential fears notably in respect of the possibility of increased vehicle downtime in the event of any delay vehicle parts supply.
As the UK Government continues to look for a negotiated deal that will resolve the current Brexit impasse as the clock ticks down towards the nation’s scheduled departure date of March 29, motor manufacturers’ responses can be summed up in the words of one: “Contingency planning has focussed on systems and process changes to enable the importation [to the UK] of parts under all Brexit outcomes.”
Most of the motor manufacturers have also indicated that they have increased stocks of parts – particularly those in high demand – in some cases for several weeks so franchise network supplies can continue in the event of a ‘hard’ Brexit, which remains the UK’s default position. Furthermore, one manufacturer was so confident in its arrangements that it said it would be “business as usual”.
Vincent St Claire, managing director, Fleet Assist, said: “There have been several stories in some areas of the press and some surveys highlighting that a ‘hard’ Brexit will have an impact on vehicle parts supply.
“However, whilst we do not want to underestimate the potential seriousness our dialogue with motor manufacturers indicates that they have taken responsibility and implemented actions that, in the worst case scenario, ensures continuity of parts supply as far as they possibly can.
“While it is clear that motor manufacturers have taken measures to maintain parts supply, it has to be acknowledged that, as one car maker told Fleet Assist, there remained many factors that were outside their control. Therefore it is impossible to guarantee manufacturers can mitigate against every eventuality and unintended consequence resulting from a ‘no-deal’ exit from the European Union.”
Mr St Claire continued: “As the network management company for many vehicle contract hire and leasing companies and rental organisations it is incumbent upon us to understand what is happening in terms of parts supply and advise accordingly.
“Our customers frequently ask what actions we are taking in the event of a ‘no-deal’ Brexit and our survey of manufacturers’ parts supply arrangements and continuous dialogue to ensure all information is as up-to-date as possible is just one example.”
Fast-growing Ogilvie Fleet has more than 18,500 vehicles on lease and under fleet management and uses the Fleet Assist garage network.
Jim Hannah, operations director, Ogilvie Fleet, said: “We are making the information available to our customers because it is vital that they are aware of any issues, such as parts supply, that may arise as a result of Brexit. It is important that customers are advised as to the actions our partners – including motor manufacturers – are taking to ensure, as far as possible, business as usual. Forewarned is forearmed.”
The motor manufacturers’ report is the latest in a number of initiatives undertaken by Fleet Assist in a bid to ensure its customers and network of garages are prepared for a ‘no-deal’ Brexit, while also raising issues particularly in relation to potential parts cost rises as well as the possibility of increased vehicle downtime.
Karen Ewer, head of business development, Fleet Assist said: “As well as regularly updating our garage network and providing our best advice notably in terms of parts stocking levels. We continue to explore and build our relationships with a number of parts suppliers.
“It is business-critical that our partners – service outlets and parts suppliers – are as prepared as possible for whatever the outcome of the Brexit negotiations are so that they continue to offer a first-class and uninterrupted service to fleet customers once the UK leaves the European Union.
“The actions that motor manufacturers have taken in response to the possibility of a ‘no-deal’ Brexit helps to allay fears that, as most garages operate a ‘just-in-time’ parts ordering process, any delays could lead to increased vehicle downtime.”
Currently it is estimated that some 80% of replacement car parts fitted to British cars are imported, with almost three-quarters of those coming from European Union-based suppliers.
One factor outside of the control of the motor industry is the introduction of trade tariffs in the event of a ‘no-deal’ Brexit. The Society of Motor Manufacturers and Traders has said that unless manufacturers and their dealer networks were able to absorb the impact parts prices could increase by an average 4.5%.
However, the Department for International Trade has announced under a temporary scheme that will last 12 months from 11pm on March 29, that most imports into the UK, including car parts from the European Union in a bid to prevent supply chain disruption, would not attract a tariff in the event of a ‘no-deal’ Brexit.
