BREXIT DEAL TOO LATE FOR SOME IN U.K. CAR INDUSTRY

The auto industry dodged disaster when the U.K. and European Union sealed a post-Brexit trade accord, but not before carmakers announced factory closures and called off plans to make several new vehicles in the country.

More damage may still be done even with last week’s deal. Automakers including Nissan Motor Co. might struggle to qualify some U.K.-assembled models for tariff-free expor t to the EU as they evaluate whether they source enough of their components locally. Costs associated with having to switch suppliers and the burdens of customs declarations, cer tif ications and audits could still leave car companies convinced they’re better off investing elsewhere.

“This is still a thin deal with major implications and costs for automotive,” said David Bailey, a business economics professor at Birmingham Business School in England. “Much will depend on the deg ree of f lexibility allowed and the degree of phasing in.”

The Brexit deal eliminates the risk of widespread exodus but still could fall shor t for carmakers with too little leeway to take on more expenses. Any further fallout could have big implications for the U.K. economy. The country’s auto industry employs more than 860,000 people, over a fifth of whom are on staff at vehicle and par ts factories. Carmakers sent $57 billion (42.4 billion pounds) wor th of autos and components overseas last year, 13 percent of the nation’s total expor ts.