Photo: neogaf.com
The European Union lost a member after British voters opted for leaving the EU in the referendum last week, and this will have consequences for both the UK and mainland motorcycling industry. What will they be is impossible to anticipate, but some things are certainly going to change, and not necessarily for the better.
First of all, the way the Brexit will influence the EU motorbike market, and the British motorcycle manufacturers is not a short-time business. Despite the vote, the process of actually leaving the EU is a lengthy one that will take years, with two being the most optimistic estimate, and ten for the maximum time needed for the completion of the process.
So far, the full implications of the Brexit are hard to guess, as to how the prices will fluctuate or what the future of Britain-based sporting events will be. Triumph, who is the biggest British motorcycle manufacturer, says that short-term changes will not affect the industry in any way.
However, the company is trying to anticipate and find solutions ready to implement and minimize whatever effects the Brexit will have on the business. For the moment, nothing will change in Triumph's business model, with the motorcycles manufactured outside the UK first arriving in England in the storage facility and then being sent to the destination markets.
Triumph analyzes the opportunity of stocking bikes in Europe directly, rather that having them passing through the UK. Other factors that could affect the British motorcycle exports include the British Pound / Euro exchange rates and whatever implications the Brexit may have on the standing trade agreements.
Also, those planning to make investments in the British motorcycle companies may become a little more reluctant, at least for the short-to-mid-term period, as the lack of certainty may temper their actions.
It will also be interesting to see how Royal Enfield will react to the Brexit. The Indian manufacturer recently announced that they envisage building motorcycles in England once more, with a technology center based in Leicestershire assembling bikes for the Western markets.
With the UK out of the EU, Royal Enfield might be rethinking their strategy, even though they said that the British branch should become operational as of this very year. It's hard to believe that the UK is the main market Royal Enfield has in their sights, but with the uncertainty that surrounds the future of UK-EU commercial relationships, things are not at all clear.
Norton has been using state funding for a while now, so they have to worry a bit less about the future, at least as long as that money is still flowing. "Time will tell" has never sounded that heavy for the British motorcycle industry.
So far, the full implications of the Brexit are hard to guess, as to how the prices will fluctuate or what the future of Britain-based sporting events will be. Triumph, who is the biggest British motorcycle manufacturer, says that short-term changes will not affect the industry in any way.
However, the company is trying to anticipate and find solutions ready to implement and minimize whatever effects the Brexit will have on the business. For the moment, nothing will change in Triumph's business model, with the motorcycles manufactured outside the UK first arriving in England in the storage facility and then being sent to the destination markets.
Triumph analyzes the opportunity of stocking bikes in Europe directly, rather that having them passing through the UK. Other factors that could affect the British motorcycle exports include the British Pound / Euro exchange rates and whatever implications the Brexit may have on the standing trade agreements.
Also, those planning to make investments in the British motorcycle companies may become a little more reluctant, at least for the short-to-mid-term period, as the lack of certainty may temper their actions.
It will also be interesting to see how Royal Enfield will react to the Brexit. The Indian manufacturer recently announced that they envisage building motorcycles in England once more, with a technology center based in Leicestershire assembling bikes for the Western markets.
With the UK out of the EU, Royal Enfield might be rethinking their strategy, even though they said that the British branch should become operational as of this very year. It's hard to believe that the UK is the main market Royal Enfield has in their sights, but with the uncertainty that surrounds the future of UK-EU commercial relationships, things are not at all clear.
Norton has been using state funding for a while now, so they have to worry a bit less about the future, at least as long as that money is still flowing. "Time will tell" has never sounded that heavy for the British motorcycle industry.
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