Nerves are showing among Britain’s car makers, which are ramping up their warnings over a no-deal Brexit as the UK's 29 March 2019 leave date gets closer.
Toyota warned of the “massive” impact of Britain not reaching an agreement with the European Union, which would mean no transition period and the immediate adoption of World Trade Organization rules, almost certainly bringing additional tariffs and border checks. Toyota has just invested in its Derbyshire factory to build the new Corolla, but, like most other car makers, it argues that the addition of tariffs and customs checks could decimate its already slim profit margins.
BMW is so worried about disruption from a no-deal scenario that it's shifting the summer closure of Mini's Oxford plant to 1 April, right after the UK is due to leave the EU. The same applies to Rolls-Royce.
BMW Group CEO Harald Krüger told journalists at the recent Paris motor show that he would also be forced to move more Mini production to the company's Netherlands plant if the UK leaves with no deal. The German ‘big three’ were supposed to be putting pressure on the EU to do all it can to prevent the UK – one of their largest markets – from heading into a no-deal scenario, but that doesn’t seem to be having much effect.
For Jaguar Land Rover, a no-deal Brexit is another headache on top of falling global sales. “I do not even know if any of our manufacturing facilities in the UK will be able to function on 30 March,” CEO Ralf Speth told an industry summit in September. He has warned of a £1.2 billion hit and the potential loss of thousands of jobs in the event of a hard Brexit. He has also threatened to shift planned production of electric cars away from the UK.
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Top Tip
Don't know about you but I'm stock piling cars at moment.
xxxx wrote:
Cars?...probably stockpiling pizzas, doritos, gummy bears and cola, to gorge while lounging on your decrepit sofa. What good did that post of yours do for this article?. TwIT, the w is silent, as you should be.
FMS - Def. - sad, lonely troll like person
Yet again you're wrong FMS, I don't like cola. And keep my sofa out it.
Economic colonialism
It won't be the end of the world if Nissan, BMW, Honda, JLR and Toyota leave the UK.
These foreign companies don't care about British workers.
Honda is making cars in Turkey. JLR is making cars in Slovakia.
They will sack British workers at the drop of a hat even if the UK stayed in the EU.
It is time for a new UK car company to be created.
max1e6
I wish I could upmark your comment. We really need a British car company making mainstream cars. As I have pointed out before, there is an enormous market for small vans that will only get larger as the internet takes over the High Street and people have everything delivered. I appeal to mega-rich people in this country to look at starting a UK car company, or taking over one and enlarging it to produce mainstream vehicles.
JLR have gone.
JLR have gone.
JLR now have three locations in Europe, Slovakia, Hungary and Austria. Any investment in future is likely to be in Europe so who will be surprised if JLR are today are discovered to be planning to sell of Castle Bromwich, the plant that presently is making cars that are not selling in volume, as they planned to do a few years ago.
It should be remembered that
It should be remembered that Parliament (MPs) don't actually have a legal veto to use. This is little understood. So if the deal that May is trying desperately to sail is down the river with doesn't get through, we go out with no deal. Parliament cannot do ANYTHING about it. The Commons' chief clerk, Sir David Natzler, confirmed this two weeks ago. Apparently, even some MPs mistakenly believe that if the deal is voted down, they can force her to go back and renegotiate a new deal. Under the Withdrawal Act, MPs would have a say, but it cannot force the government to do anything. ANY motion has no statutory significance. I hopevery much that happens. I want a 'no deal' as only that properly means we leave the EU. Yes, there will be economic consequences, but Brexit isn't about economics, it's about politics.