Genuine parts prices after Brexit

Hi all, My coffin arms are going, so I'm looking at getting some suspension parts. Do you think parts prices will go up after Brexit, specifically genuine parts? Might make me get them now, rather than waiting for it to fail an mot. I know you can get alternatives, but I'm looking at genuine parts prices, probably from the OPC. Cheers, Dave

They'll be 50% cheaper and the labour to fit them will be free... In reality, it would depend on the exchange rate and the tariffs that are applied to imports (I don't think any parts are made in the U.K.). When ever I've called about parts I've been told that the prices are changing quite frequently which is probably due to the uncertainty in the currency markets. I think it's very difficult to predict what will happen and nobody can tell you for certain what the outcome will be but a £200 part probably isn't going to cost £400 after brexit but if there are tariffs and the £ devalues then they'll be more expensive, if there are no tariffs and the £'s value goes up, they will be slightly cheaper * this is not financial advice!

As above, but bear in mind that tariffs are not the only cost, even if we get a deal (which is looking unlikely at the moment) there will be significant barriers to entry for all goods - this is why for e.g. Honda closed down their UK operation as just in time supply chains don't work when your goods are in a lorry park in Kent for 48 hours waiting for clearance. It's certain that it's going to cost Porsche more to send stuff here from a logistics and customs clearance point of view, It's probable that Porsche UK will have to pay import duties, and it's likely that the pound will reach parity with or fall below the Euro in 2021, so yes - parts are going to get more expensive, but we just don't know by how much.

Sorry, that's wrong. I provide support for clearance agents and the government are telling them that it will be done electronically, with hauliers getting months to actually file the clearance. There will be less disruption than there is now as the Turkish actually have to stop. The government have been throwing lots of money at clearance agents to increase capacity. I have customers with 30 odd PC's sitting ready to go, others ready to setup new firms and many doubling IT equipment ready for an increase in staff.

Simply not true. Hence why we have supply chain management.

We shall test this empirically, let's see if there are delays. I would be hesitant to bet on a system that doesn't yet exist, but maybe it'll happen- the furlough scheme was a rare example of government IT that worked, rapidly and well. What is incontrovertible is that all of this additional red tape costs money- just the salaries of the 50,000 additional customs agents that we are told are needed. That cost will find it's way to the goods we buy. Whether we notice it or not is a good question- the government projects it to be slightly more, annually, than our membership of the EU cost for the same period.

Sorry Alex, *A* supply chain will work, a JIT supply-chain will not, cannot- by definition. Unless we wave everything through from month 7 onward, but I thought the point was taking back control, not losing it forever?

Some detail on JIT in this article- note that it's from 2018, before we decided to go for the maximum friction/minimum cooperation model: https://ukandeu.ac.uk/could-brexit-spell-the-end-for-just-in-time-production/#

So you can only run JIT if you get your supply from the EU and you're in the EU? :chin: What about companies running JIT that get their supplies from the ROW?

It's not going to get any cheaper that's for sure, hence why I'm getting all my work done this year JIT is part of your supplier filling your shelves automatically for when you build products (Kanban). Needs a close working relationship and the whole Brexit process is putting a distance and unknown variables hence companies severing ties already. Once things settle down it might get better but that's years down the line... We are not paying to bail out Italy etc because of COVID19 so there is an upside

I think I'm with Robbie. If I'm going to buy the parts, better to get them now before the mot failure, rather than take the wait and see approach. I can't see them getting any cheaper either. Whether it's wise to spend this much on a 16 year old car, is another question altogether. Dave

whatever sunlit uplands we reach, it won't be any cheaper. That's fact.

The duty cost will be to the importer. If they choose to pass on the cost to the end user, that makes their product less competitive against UK produced goods. That will be a good thing for the UK, because we desperately need to get back to making things again instead of selling the family silver to foreign firms in order to live off cheap imports. It's far from the doom and gloom many are painting it as, but hey, back to Porches! :thumb:

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Just as long as Porsche look at the situation, think 'we could do two things here, thing one would be to allow UK buyers to pay more for our products, thing two would be to invest billions of Euro into building factories in the UK to service the UK market, so that UK buyers can avoid paying a tax on our parts to the UK government. Let's do the billions of Euro one, Hans". In terms of pattern parts then those made in the UK will gain a (further) advantage against OEM- unless of course the inputs for those parts come from overseas. How much aluminium do we mine here? Being realistic Porsche isn't going to build factories here, but by stripping out workers rights we might make servicing cheaper by forcing mechanics to work for longer, for less money, with fewer holidays. Deregulation is the prize, as we are told frequently.