Why 'Brexit' Is Only a Temporary Problem For Car Manufacturers?

The group of car manufacturers has posted massive earnings, having increased by 33%, to more than £2.0bn, and profits, sans tax rose to £46.7m, from the start of the year to halfway.

Andy Bruce, the chief executive of Lookers, has stated that this is a sign of future confidence, as the dividend also increased to a price of 1.28p for each share. Furthermore, according to Bruce, the referendum approved at the EU has had a very little negative economic impact.

Despite that, they have already prepared prior to June 23, so that they would be able to monitor orders every day, and comparing them from the number of orders one year ago, and it was found that there have been no significant changes since Brexit, according to Bruce. There is believed to be a correlation with population growth, GDP growth, and sales cars - while there may be difficulties and particular hurdles along the way like Brexit, the mark for 3m new car sales could still be reached eventually, and while momentum may be put off-balance temporarily, the basics still remain.

Also, according to Mr. Bruce, sales are also expected to do well in the next month, which is considered to be a crucial month for the industry, as Lookers have already attained more than half of its targeted amount for the month of August. He Also believes that the rebirth and growth of the automotive industry are still going on, as their profit for this quarter, compared to three years ago has increased significantly.

Previously, Lookers has issued a statement which says that it will be putting their business on distributing parts for sale for £120m, to one of their largest clients, Alliance Automotive. Although it is a highly profitable part of the business, Mr. Bruce said there was little Despite being one of the most lucrative business aspects, Mr. Bruce believed that it did not offer adequate room for overall business growth and that getting rid of it would give more time and energy to Lookers in order to look after service operations and sales, which offer higher growth.

It was announced a few days ago that they would be making use of £55.4m of its earnings from sales for acquiring of the dealership chain Drayton Warwick, and Mr. Bruce has further stated that more purchases are to come. This would mean that Lookers would then be the largest car dealership in the country, with now more than 160 branches.