'Hard' Brexit

[meridian]

Including Jaguar, and given the exit their exports to the US should return to pre-EU levels.

I note the the remainders are still afraid of the big bad WTO rules.

JLR will need to see sales increase dramatically more than 19k units of a model before they build locally, otherwise it won’t make sense to build a factory there. Until then, they’ll be subject to harsher tariffs than other manufacturers that do have factories within NAFTA.

https://www.motor1.com/news/238242/j...over-build-us/

Which WTO rules do you specifically mean?

[sal]

Including Jaguar, and given the exit their exports to the US should return to pre-EU levels.

I note the the remainders are still afraid of the big bad WTO rules.

Too bad Jaguar is not a British car manufacturer...

Any sane person should be afraid of going to all out WTO tariffs, which speaks volumes about the supporters of hard (back to WTO) Brexit. Even 3rd world countries have better trade agreements with their major trading partners than what the WTO offers.

[Cirrus]

News flash, a lot of the German cars for the US market are manufactured in Mexico and the like.

BMW's biggest manufacturing plant is ... Spartanburg, South Carolina.

[meridian]

Too bad Jaguar is not a British car manufacturer...

Any sane person should be afraid of going to all out WTO tariffs, which speaks volumes about the supporters of hard (back to WTO) Brexit. Even 3rd world countries have better trade agreements with their major trading partners than what the WTO offers.

It’s not WTO tariffs per se, it the U.K. schedule of tariffs lodged with the WTO. A very fine distinction :-) but one which sets us up to trade under WTO rules.

There’s an excellent blog on trade that also discusses the finer points of WTO tariffs, schedules, quotes, MFN, etc here

https://tradebetablog.wordpress.com

[Cirrus]

BMW's biggest manufacturing plant is ... Spartanburg, South Carolina.

Think about this.

Idiots on this channel keep saying there will be some barrier to German cars. As a result, they argue, the Germans will get rattled and force the EU to concede EU membership to UK on unicorn terms.

However right now if you want an X3 for example, it will come from the USA. After Brexit, it will come from... the USA.

Tory free trade ambitions will certainly not increase tariffs on american cars. So if BMW can source vehicles into the UK from third countries now, I'd love to hear your theories why they won't be able to do so after Brexit (when America remains a third country, and Germany - for eg 3 series - becomes just another one).

[BlasterBates]

Think about this.

Idiots on this channel keep saying there will be some barrier to German cars. As a result, they argue, the Germans will get rattled and force the EU to concede EU membership to UK on unicorn terms.

However right now if you want an X3 for example, it will come from the USA. After Brexit, it will come from... the USA.

Tory free trade ambitions will certainly not increase tariffs on american cars. So if BMW can source vehicles into the UK from third countries now, I'd love to hear your theories why they won't be able to do so after Brexit (when America remains a third country, and Germany - for eg 3 series - becomes just another one).

Indeed, in fact the biggest market for cars is China, and guess who they will be importing cars from and it probably won't be the US.

[darmstadt]

I believe it is now referred to as a 'Clean Brexit':

The metaphor of a “hard Brexit” appealed to soft-fleshed types who dream of being manly and thrusting, while a “soft Brexit” still sounds altogether too submissive. Having newly discovered a concern for hygiene, Tory rebels now say they want a “clean Brexit”, not the filthy, presumably French kind.

[darmstadt]

One of the most common sayings that the Brexiteers always come up with almost without fail is "The German car industry won't let the EU let the UK leave with no deal, they need the UK to buy BMWs, Mercedes, Audi, VW etc"

But no one has ever said they will stop selling their cars in the UK.... It's just that those cars will be more expensive for UK citizens to buy post-Brexit.... And now that the EU have concluded a new tariff free deal with Japan who have a much larger economy than the UK.... the EU REALLY don't need us as much as we need them.

Turns out their 'Ace in the hole' has turned into a 2 of clubs.

[Cirrus]

It's just that those cars will be more expensive for UK citizens to buy post-Brexit...

Why?

[original PM]

Why?

Because the EU will put an increased tariff on it.