A no-deal Brexit would lead to ‘Armageddon’ for the motor industry in the UK, according to the head of one of Scotland’s largest dealership groups which today reported record sales.
Brian Gilda’s comments came as the Peoples Ford dealership group he founded 36 years ago reported sales of £277 million last year although profits fell amid fierce competition in the market.
The Falkirk-based group reported profits in the year to 31 July of £4.55 million, a drop of 17.2%. The firm stressed the profit figure was the fifth best in its history and that its return on sales figure “outperforms most other comparable dealerships”.
Gilda said despite the drop in profits he was “delighted” with the results. He added: “Throughout the year the group has bettered all the operational benchmarks and financial milestones continuously identified by the directors to our shareholders, bankers and trading partners.”
In his chairman’s statement, Gilda also warned that Brexit had already damaged consumer confidence.
“Only the most resilient will get through the pain barrier that’s coming over the next couple of years if we exit Europe without a deal and the government will be responsible for the Armageddon that follows,” he said.
“The current disarray and hysterical rhetoric afflicting politics is bad for business and bad for industry in many respects, not least because it is undermining public confidence.”
He urged politicians to “get a fix on Brexit and an agreement which doesn’t impose unacceptable tariffs and cross-border trading constraints”. He added: “Otherwise, there’s going to be a real shakedown in the industry.”
Peoples Ford group employs 400 staff at dealerships in Edinburgh, Livingston and Falkirk and three in the Liverpool area.
