As of 1 February 2020, the United Kingdom is no longer a member of the European Union (EU). In addition, the agreed transition phase ended on 31 December 2020. With the agreement on the trade and cooperation treaty of 24 December 2020, the European Union and the United Kingdom have established a new basis for economic relations. Overall, the Brexit negotiations between the UK and the EU were difficult, long-lasting and extremely intensive. In the end, however, both parties succeeded in reshaping the future relationship on both the political and the economic level. Nevertheless, it must be stated that Brexit has had a noticeable economic impact on the UK, the EU and Germany - one of the largest economies in the EU. The British automotive industry in particular has been hit hard by Brexit and is facing an uncertain future. Since 2017, the UK has seen a sharp decline in car registrations. By 2020, the UK vehicle market had lost more than 1 million units (-39.4%), with market share falling to 14.1%. German car manufacturers, on the other hand, are the undisputed leaders within the EU with 2.92 million new registrations (25.2% share). The German automotive industry has coped much better with the effects of Brexit than the British carmakers - due to its international dominance.
Table of Contents
1 Introduction
1.1 Problem definition
1.2 Course of the work
2 Brexit
2.1 Brexit process
2.2 Economic effects for UK
2.3 Economic effects for EU
2.4 Economic effects for Germany
3 Brexit and the automotive industry
3.1 General conditions and sector development – automotive industry
3.2 Brexit: Economic effects for the UK automotive industry
3.3 Brexit: Economic effects for the German automotive industry
4 Conclusion
Objectives and Topics
This essay aims to analyze the economic impact of Brexit on the United Kingdom, the European Union, and specifically Germany, with a detailed focus on the automotive industry's development amidst these geopolitical changes.
- The historical and political process of the UK's withdrawal from the EU.
- General and sector-specific economic consequences of Brexit.
- The impact of Brexit on the UK automotive industry, including production and investment.
- The resilience and comparative performance of the German automotive industry in the post-Brexit landscape.
Excerpt from the Book
1.1 Problem definition
Brexit has led to economic effects within the EU and in particular in Great Britain and Germany. In addition, numerous sectors, especially the automotive industry, are affected by the UK's exit from the EU. Against this background, the research question is: Will Brexit result in a slump in the British economy with noticeable effects on the automotive industry? In this context, the hypothesis is: The Brexit did not lead to the predicted economic collapse in the UK. Nevertheless, the Brexit led to economic spillover effects on the EU and Germany. Moreover, economic sector effects can be observed in connection with the Brexit, especially with regard to the British and German automotive industries, whereby the German automotive industry is affected to a lesser extent.
Summary of Chapters
1 Introduction: Provides an overview of the Brexit context and outlines the paper's research question, hypothesis, and methodology.
2 Brexit: Examines the origins of the Brexit process, from the initial referendum to the final withdrawal agreement, and analyzes the general economic effects on the UK, EU, and Germany.
3 Brexit and the automotive industry: Investigates the transformation of the global automotive sector and details the specific negative impacts of Brexit on both the British and German automotive industries.
4 Conclusion: Synthesizes the findings, confirming that while Brexit has caused significant economic adjustments, it did not trigger a total economic collapse, particularly highlighting the relative resilience of German car manufacturers.
Keywords
Brexit, United Kingdom, European Union, Germany, Automotive Industry, Economics, GDP, Trade Agreement, Manufacturing, Supply Chain, Investment, Digitalisation, Mobility, Export, Import
Frequently Asked Questions
What is the core subject of this scientific essay?
The essay focuses on the economic consequences of the United Kingdom's departure from the European Union, specifically analyzing how this process has impacted the automotive sectors in Britain and Germany.
What are the central themes covered in this paper?
The main themes include the political Brexit process, the macro-economic shifts within the UK and EU, and the structural transformation of the automotive industry under the pressure of new trade barriers.
What is the primary research question?
The central research question investigates whether Brexit leads to a severe economic slump in the British economy and what specific, observable effects this has on the automotive industry.
Which research methodology is applied here?
The paper utilizes a literature-based analytical approach, reviewing existing studies, economic forecasts, and statistical data regarding industrial performance and GDP development since the 2016 referendum.
What does the main body of the work address?
The main body evaluates the Brexit process, examines the broader economic fallout for the UK, EU, and Germany, and provides a comparative analysis of how the automotive industries in the UK and Germany have adapted to the changed environment.
Which keywords characterize the work best?
Key terms include Brexit, Automotive Industry, UK Economy, German Car Manufacturers, Trade Relations, and Industrial Transformation.
Why is the British automotive industry hit particularly hard?
The industry is heavily reliant on EU supply chains and export markets; the uncertainty regarding trade status, the potential for double certification (WVTA), and investment shifts have led to reduced production and job losses.
Why does the German automotive industry remain more resilient?
The German automotive sector benefits from global positioning, diverse supply chains, and a strategic focus on technology and innovation, making it less dependent on the UK market compared to the UK's dependence on the EU.
- Arbeit zitieren
- Maximilian Ludwig (Autor:in), 2021, Brexit and automotive Industry, München, GRIN Verlag, https://www.grin.com/document/1190416
