Minicoach and minibus supplier EVM says an uptick in the demand for deliveries and registrations of new vehicles ahead of the post-Brexit transition period’s end on 31 December has left it “cautiously optimistic” about the remainder of 2020. But if the UK does not reach a trade agreement with the EU, price rises in 2021 will be inevitable, it adds.
Managing Director Danny McGee says that new vehicle deliveries to both UK and Irish operators have remained “solid” for EVM despite the challenges being faced in both countries. Since July it has steadily ramped up production back to pre-coronavirus COVID-19 levels to accommodate that demand.
Only a handful of buyers have delayed handover dates. The manufacturer is now working to grow capacity for December deliveries at its Kilbeggan, Co Westmeath plant as customers increasingly aim to receive vehicles ahead of a possible ‘no deal’ Brexit.
EVM adds that the implications of a failure to reach an agreement would pose a major challenge. No trade deal between the UK and the EU would result in “substantial price rises” from 1 January 2021. That represents “a real risk to companies that are already looking for a solid footing to make their way out of 2020 and its coronavirus COVID-19 hangover,” says Mr McGee.
EVM estimates that if the UK emerges from Brexit with no agreement, customers will see a minimum additional cost of 10% incurred by all vehicles entering the UK.
Work to increase capacity in Kilbeggan has included ensuring that sufficient base vehicles and chassis are in stock to meet delivery requirements for December deliveries. That leaves EVM “very well placed” to handle a pre-January rush, says Mr McGee.
A no-deal Brexit “is a real concern for our customers, who are not prepared to face additional costs going into an already uncertain first quarter of 2021,” he adds.
