The Truth About Brexit and the UK Car Industry

The Truth About Brexit and the UK Car Industry


in 1982 Prime Minister Thatcher visited miss Anne’s HQ in Japan and persuaded the chairman of the company to invest in the UK with an assurance that there was no realistic prospect of Britain leaving the European single market because of the dependence of Britain on exports to Europe the European single market is a trade bloc that seeks to guarantee the free movement of goods capital services and people within the European Union the market encompasses the e use 28 member states as well as Liechtenstein Norway and Switzerland the market is intended to increase economic activity support larger economies of scale allowing Goods and components to move to the area where they are most valued thus improving the efficiency of the allocation of resources the car industry in Europe was the prototype for the single market with supply chains of parts dispersed around Europe and integrated for practically instant just-in-time delivery to the production lines [Music] this end now will be a major manufacturer of cars within the United Kingdom and a major employer for the Northeast this and will be a major exporter of cars into Europe Nissan products will include large amounts of local content build engines here and does generate many more jobs in the components part of our industry Nissan will establish design and development facilities so that the United Kingdom company is fully involved in the design of future models the other thing I think you know as somebody who’s from the Northeast I think it’s important that this place continues to be successful because I don’t understand or can’t contemplate what the Northeast would look like without a successful Nissan I think it would be a much worse place to live than what it currently is and I think that’s something that is a responsibility on the plant that you know we are important in the region we’re all northeasterners and we’ve got a keeper this plant moving forward the total number of votes cast in favor of leave was 82,000 you if as seems likely the UK ended up trading with Europe under WTO rules that could add 10 percent to the price of a car being exported because of tariffs would that represent the kind of handicap you’re talking Oh without any doubt that means ten percent more cost on the product only because in the UK would be a major handicap yes without anything and what would that mean to Sunderland well it would mean obviously that Sunderland which luscom you Carlos go in the nissan chief executive was given assurances that the sundaland plant would remain competitive that’s the backdrop to the company’s decision this week to invest not only in producing the next generation of the Cash Chi model at the plant but also moving the x-trail and an SUV currently made in Japan to the site these cars are not going to be made until 2019 the point at which Britain will already have left the EU so the government has two and a half years in which to work out how it’s going to achieve its aim that Nissan will not face any change in its trading conditions what the Financial Times has learnt is that miss an indicated that the whole of its UK business hinged on the decision to award the cash guy to Sunderland the cash guy is the biggest car made at the Sunderland plant if the work had gone elsewhere such as to one of the companies plants in Spain it was very unlikely the plant would remain competitive in the long run before Ness and made the decision the business secretary Greg Clark who visited Tokyo last week wrote to the company’s executive committee setting out in writing the assurances that the government had previously offered to the car maker this letter means that Nissan now has a piece of paper to wave something that’s actually codified and written down which guarantees the government’s assurances to the company that it won’t face a change in its trading conditions if missives decision had gone the other way analysts say it would almost certainly have spelt the beginning of the end for some of Britain’s car industry at a time when it’s been enjoying an industrial Renaissance what Nissan’s decision does mean is that the other carmakers are going to be banging on the door of Downing Street demanding the same reassurances and conditions that have been offered to Nissan in order for them to make their decisions to bring their next cars to the UK as well all of these car plants in the UK are built on the basis that they will have unfettered access to the European market Masonic sports 80% of its cars to the EU as does Vauxhall as does Toyota and even the car companies that sell their cars mainly in the UK buying more than half of their parts from the EU so tariff free and barrier free access to the European single market is absolutely critical for these car makers in order to keep their plants competitive so we do not seek membership of a single market we are leaving the European Union we do not seek to hold on to bits of membership as we leave no the United Kingdom is leaving the European Union the automotive sector is concerned about how to resumes approaching brexit negotiations and their financial impact writer number one is keep the internal market and the European Union together most of the cars we export export to the European Union the 27 countries to Italy to France to many parts of the European Union and second priority our exports to Britain a heart breaks it would definitely be not a good solution for both sides for everyone who has a production side at the very moment in Britain is concerned about the developments which say that you want a heart proceed if the doors to Europe would be in one or another way partly closed then production in Britain would suffer after the fun enough is read as what damage this will do to the European idea well I’m sure they do that’s why they supported what sure harren office is pro do it up isn’t it yes no if you’ll forgive the expression the Foreign Office is Pro Europe because it is really an to Europe the civil service was United in its desire to make sure that the common market didn’t work that’s why we went into it you told him mr. Brittain has had the same foreign policy objective for at least the last 500 years to create a disunited Europe in that cause we are fought with the Dutch against the Spanish with the Germans against the French with the French and Italians against the Germans and with the French against the Germans and Italians divide and rule you see why should we change now when it’s worked so well in history surely yes and current policy we had to break the whole thing up so we have to get inside we tried to break it up from the outside but that wouldn’t work now that we’re inside we can make a complete pigs breakfast of the whole thing except the Germans against the French the French against the Italians here talyn’s against the Dutch the Foreign Office is terribly pleased it’s just like old times surely no committed to the European ideal really Minister not why are we pressing for an increase in the membership well for the same reason it’s just like the United Nations in fact the more members it has the more arguments it can stir up the more futile and impotent it becomes Pauling salute ISM yes we call it diplomacy Minister


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