The Brexit Controversy
Recently, the Brexit referendum in the United Kingdom created headlines around the world. British voters decided by a vote of nearly 52% that the UK would leave the European Union. Some stock market analysts predicted this decision might impact some U.S. companies and stock market investors.
What, if any, impact will the Brexit decision have on the automotive industry in North Carolina? Immediately after the Brexit vote, British currency plummeted in world markets.
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Essentially, the Brexit vote and the currency market response mean that in the short term, many products manufactured in the UK and sold in the USA will cost less. The U.S. dollar became 20% stronger compared with the British pound when currency values changed suddenly. Certain British exports will now become far more competitive in overseas markets for the near future because of the decline in the value of the British Pound.
In North Carolina, the Brexit vote will likely exert very little impact. However, for the short term, because of the currency fluctuation, some imported vehicles from the UK may cost less, especially British cars that don’t include a lot of parts manufactured elsewhere. If you’ve ever wanted to purchase a new imported automobile from the British Isle or take a vacation to London, you might discover some bargains on the market right now!
The U. S. Automotive Industry’s Big Three
The Brexit vote will likely exert very little impact over the North American automotive industry. For one thing, the UK produces comparatively few automobiles compared with global markets.
A report released this week entitled “2016 State of the U.S. Automotive Industry” reveals that three large automakers produce the majority of the vehicles manufactured within the USA: General Motors (GM), Ford and FCA US (Fiat Chrysler Automobiles). Two thirds of the workers employed in automobile manufacturing in the United States work for one of these three companies.
While the currency changes may make U.S.-manufactured automobiles and other goods more expensive for customersin the British Isle over the short term, the Brexit vote probably won’t significantly damage most U.S. firms.
Maintain Your Vehicle
When your vehicle requires an inspection, routine maintenance or repairs, simply call (919)876-2943. North Ridge Station provides fast, reliable automotive service throughout the year in the greater Raleigh area.