Car parts maker TMS blames Brexit for closure of UK site
A supplier of car parts to the likes of Range Rover and BMW is reportedly closing its UK plant and setting its sights on Europe.
Thermal Management Solutions (TMS) has told staff that it intends to develop capabilities at manufacturing sites in France and Germany and axe its UK division, Sky News has learned. The closure of the company’s site in Reading will reportedly affect 140 jobs.
“Over recent years the automotive industry has experienced unprecedented turbulence and uncertainty, with some markets hit harder than others,” Mark Franckel, TMS’s chief executive, told Sky News.
“It was against this challenging backgroup that the decision to transfer production from the Uk to Europe was made,” he added.
According to an insider the company has decided to pivot towards manufacturing bases in Europe because of supply chain issues which have worsened as a result of Brexit. A growing heap of paperwork, higher distribution costs and greater complexity expedited the decision the insider told Sky News. The desire to increase its presence in Europe as TMS makes the transition from diesel and petrol vehicles to hybrid and electric cars was also a factor.
The closure of the UK plant after over 60 years, is a sign of Brexit’s damaging impact on the automotive industry. In a particularly hard blow Honda closed its Swindon plant in 2019, slashing 3,500 jobs in the process.
Car makers worldwide are also being hit hard by a global shortage of semiconductor chips. In February, Mini announced the temporary closure of its Oxford factory amid supply shortages.