European Car Parts Companies Closing UK Factories

Wed, 7th Nov 2018

More than 1,400 jobs in Britain could be at risk as two European companies supplying car parts have announced plans to close their UK factories in the run up to Brexit. Schaeffler and Michelin have announced factory closures in the run up to Brexit.

Schaeffler is a German car parts supplier, and they say that the uncertainty surrounding Brexit has added to its decision to close factories in Plymoth and Llanelli, Walse. The closures are set to take place over the next two years. Meanwhile, Michelin has announced that in 2020 it will close its factory in Dundee, which has been open for almost 50 years. Michelin blames falling demand for smaller tyres, rather than Brexit, for the decision.

The worker’s union Unite said that it will be trying to avert the closures, and that it plans to fight for every job. Assistant General Secretary Tony Burke called the news another body blow for the automotive supply chain in the UK and for the wider car industry. He added that the closures show what is in store if the UK leaves the EU without a trade deal.

The closures and the uncertainty in the car industry are a matter of concern as the industry is a major employer. The industry has asked the government to prioritise frictionless and tariff-free trade in Brexit negotiations, to help to safeguard as many jobs as possible in the run up to the Brexit. Schaeffler has more than 1000 people working for it in the UK,and does plan to keep at least two of its other factories open.

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