Nissan halts investment plans

[meridian]

Perhaps the Brexiters on here who were afraid to talk to the NE fitters about halting Brexit in case they turned violent, could pop up and explain to them that there’s a real possibility they will lose their jobs but it’s okay because we’re respecting their vote?

https://www.sunderlandecho.com/news/...rts-1-9225210/

Car manufacturing giant Nissan is putting its investment plans in the UK on hold until there is more certainty over Brexit, according to reports.

The company's chairman and chief executive, Carlos Goshn, is said to have announced the Japanese firm is deferring all long-term business decisions while it remains "in the dark" about Britain's future relationship with the EU.

[Cirrus]

The Bangladesh of Europe will Keep on Running

there’s a real possibility they will lose their jobs

Just because planning is on hold you cannot jump to a conclusion that jobs are at risk. If we assume there will be a firm Brexit because of red lines, then business will be more expensive for Nissan but against that labour costs are likely to be even more attractive due to a drop in the value of the pound and the even more capitalist exploitation of cheap labour. Admittedly it would be cheaper to build cars in Eastern Europe but would Nissan want to invest billions when they already have the most efficient plant globally?

[sasguru]

One or two large factories need to close down - but I don't think even that will penetrate thick skulls.

[meridian]

Just because planning is on hold you cannot jump to a conclusion that jobs are at risk. If we assume there will be a firm Brexit because of red lines, then business will be more expensive for Nissan but against that labour costs are likely to be even more attractive due to a drop in the value of the pound and the even more capitalist exploitation of cheap labour. Admittedly it would be cheaper to build cars in Eastern Europe but would Nissan want to invest billions when they already have the most efficient plant globally?

How will labour costs be cheaper due to a drop in the pound? If you had said the cost of imported components this may have made sense - offset, of course, by the additional costs of NTB and additional warehouse storage.

The Japanese have been very clear - no CU + SM means that they will reconsider their business models. Halting investment is simply the first step in that.

Would they want to invest billions elsewhere? If their accountants see it as more efficient in the long term (decades) then yes. They’ll simply run down the existing lines over the years instead of investing more into them. Tax write-off of existing infrastructure plus subsidies from other countries might make this an attractive proposition.

[sasguru]

How will labour costs be cheaper due to a drop in the pound? If you had said the cost of imported components this may have made sense - offset, of course, by the additional costs of NTB and additional warehouse storage.

The Japanese have been very clear - no CU + SM means that they will reconsider their business models. Halting investment is simply the first step in that.

Would they want to invest billions elsewhere? If their accountants see it as more efficient in the long term (decades) then yes. They’ll simply run down the existing lines over the years instead of investing more into them. Tax write-off of existing infrastructure plus subsidies from other countries might make this an attractive proposition.

That is indeed what will happen. 5-10 years down the line and the uK will wake up with no manufactuting industry worth speaking of.

[meridian]

How will labour costs be cheaper due to a drop in the pound? If you had said the cost of imported components this may have made sense - offset, of course, by the additional costs of NTB and additional warehouse storage.

And in my effort to try to be fair I think I got this the wrong way around for component imports.

Not only will U.K. labour costs remain the same (in GBP), plus additional costs in building new warehouses, the cost of components will go up due to the weak pound (assuming the pound is weak, of course). Much of this might be internal costs if they are Nissan-owned semi-finished goods being imported (a loss here is a profit for the EU plant) but the internal transfer pricing would still have an impact on the U.K. plc bottom line. Which would impact expected bonuses in the U.K., hence employee wages. A vicious circle.

[Eirikur]

The future of Britain's great car industry after Nissan, BMW, Vauxhall and Ford left

[LondonManc]

Perhaps the Brexiters on here who were afraid to talk to the NE fitters about halting Brexit in case they turned violent, could pop up and explain to them that there’s a real possibility they will lose their jobs but it’s okay because we’re respecting their vote?

https://www.sunderlandecho.com/news/...rts-1-9225210/

These are exactly the sorts of risks that Cameron et al should have been talking about to the voters at the referendum, not slagging Boris and Nige off (plenty of time for that later). The government are simply reaping what they have sown.

[Old Greg]

These are exactly the sorts of risks that Cameron et al should have been talking about to the voters at the referendum

You mean Project Fear?

https://assets.publishing.service.go...for-the-uk.pdf

[BlasterBates]

These are exactly the sorts of risks that Cameron et al should have been talking about to the voters at the referendum, not slagging Boris and Nige off (plenty of time for that later). The government are simply reaping what they have sown.

He did, he never slagged Boris and Nige off, he came out with all these warnings, and then was slagged off himself. Cameron ran a good campaign.

People were warned they voted for Brexit and slagged off all the politicians, they got their Brexit and they reap what they sow.