Great Britain has already begun to feel the results from the Brexit vote, both good and bad. One of the not so great results is that new car sales are down by about six percent in 2017 overall. That’s coming off a year in which the UK auto industry saw record sales, with many opting for car finance, which you can learn more about at Money Expert. Who to blame for the down year is very clear, at least to Mike Hawes, CEO of the Society of Motor Manufacturers and Traders. He told CNN: “Obviously, consumer and business confidence has dropped since the [Brexit] referendum… 2017 has undoubtedly been a very volatile year, and the lackluster economic growth means that we expect a further weakening in the market for 2018.”

But is Brexit really to blame for the sharp downturn in British auto sales, or is that just a market correction after a particularly strong year?

In the months after the surprise approval vote to leave the European Union, British economic development stagnated. The value of the pound dropped, inflation rose, and wages could not keep up. This put the country into a bit of an economic holding pattern to see how these trends would level out. As it turned out, they haven’t. British consumers have less to spend, so they are spending less. That means businesses are hurting as a result. Worse, especially for automakers and manufacturers of other “big ticket” items, people are choosing to wait and save, rather than buy now, (unless they decide to check out guarantor loans on Lendingexpert.co.uk to help them buy the car immediately.)

In December alone, auto sales were down 17 percent as compared to the same time in the previous year. But industry leaders are not blaming all the bad news on Brexit. They say the government shares some of the blame. The British government has been talking trash about diesel and combining the negative rhetoric with higher taxes on diesel vehicles. That’s bad news when diesel vehicles make up about 40 percent of the British automotive market.

That’s not to say Brexit definitely didn’t play a role … it definitely did. Other EU nations are seeing good overall car sales, even as many countries are cracking down on emissions and greenhouse gases. That begs the question, will Britain be able to pull out of the slump this year, or will the British auto industry continue to falter? Mr. Hawes certainly feels he has his answer, but others are not so certain.

They believe Britain can come back. They just need better consumer PR and a little less “help” from the government.

Ronn Torossian is the Founder and CEO of the New York based public relations firm 5WPR: one of the 20 largest PR Firms in the United States.

 

Read more from Ronn Torossian:

Ronn Torossian on Forbes
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Ronn Torossian on LinkedIn
5WPR, Public Relations Insights & PR Firm
Ronn Torossian on Business Insider

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Ronn Torossian is the Founder & Chairman of 5W Public Relations, one of the largest independently owned PR firms in the United States. Since founding 5WPR in 2003, he has led the company's growth and vision, with the agency earning accolades including being named a Top 50 Global PR Agency by PRovoke Media, a top three NYC PR agency by O'Dwyers, one of Inc. Magazine's Best Workplaces and being awarded multiple American Business Awards, including a Stevie Award for PR Agency of the Year. With over 25 years of experience crafting and executing powerful narratives, Torossian is one of America's most prolific and well-respected public relations executives. Throughout his career he has advised leading and high-growth businesses, organizations, leaders and boards across corporate, technology and consumer industries. Torossian is known as one of the country's foremost experts on crisis communications. He has lectured on crisis PR at Harvard Business School, appears regularly in the media and has authored two editions of his book, "For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations," which is an industry best-seller. Torossian's strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, a Top Crisis Communications Professional by Business Insider, Metropolitan Magazine's Most Influential New Yorker, and a recipient of Crain's New York Most Notable in Marketing & PR. Outside of 5W, Torossian serves as a business advisor to and investor in multiple early stage businesses across the media, B2B and B2C landscape. Torossian is the proud father of two daughters. He is an active member of the Young Presidents Organization (YPO) and a board member of multiple not for profit organizations.