As a Brexiteer and in the interests of Objectivity this news is inevitable and it is worrying. How much is bluff however and are these companies realiy going to up sticks and move and if so where?
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[Merged]Brexit stuff
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Originally posted by GB9 View Post
As our exported goods are now cheaper you would have thought it sensible to be based here.
They are businesses and their goal is profit - they'll stay here until they stop making money, then they'll move.
Simple.
We could of course ensure they made profits, in spite of the tariffs, by removing the minimum wage and being a low wage economy.
Which would suit the Tories, so that's what we'll probably do.Hard Brexit now!
#prayfornodealComment
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Originally posted by DodgyAgent View PostAs a Brexiteer and in the interests of Objectivity this news is inevitable and it is worrying. How much is bluff however and are these companies realiy going to up sticks and move and if so where?Comment
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Originally posted by GB9 View PostI thought a lot of it was because we gave them massive subsidies and big contracts to build stuff for us.
As our exported goods are now cheaper you would have thought it sensible to be based here.
The least value of a car factory is the prefabricated building. The valuable machines and robots can be unbolted a shipped to another country within days."A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George OrwellComment
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Originally posted by SueEllen View PostAren't bake beans foreign?
It's a plot by the EU, if we consume the beans then we are becoming more european, just by eating the produce.
I blame the BBC.…Maybe we ain’t that young anymoreComment
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Originally posted by DodgyAgent View PostAs a Brexiteer and in the interests of Objectivity this news is inevitable and it is worrying. How much is bluff however and are these companies realiy going to up sticks and move and if so where?
I will try and give an intelligent answer.
The problem is that in the worst case scenario (WTO rules), the tariff on British made cars in Europe will be 10%.
As the margin on the (mainly) mid range cars that Britain makes is razor thin, I doubt that a 10% tariff can be sustained by the manufacturer - they can't pass it on the the price-sensitive buyers who buy Qashqais and Hondas.
Jaguar/Range Rover might be able to. And also Mercedes/Audi/BMW could probably survive a tit-for-tat if we charged them 10%, since their buyers will pay anyway.
On the other hand it does cost a lot to up sticks and move. There would have to be a supply chain in place.
It seems that Slovakia has all the infrastructure necessary :
https://en.wikipedia.org/wiki/Automo...ry_in_Slovakia
That's why Tata has opened a large Jag/LR manuafcturing plant in Slovakia - if they find their profits reduced following a hard Brexit, I reckon they'll just run their UK plants down and ramp up in Slovakia instead.
Likewise the way Nissan operates is that all their worldwide plants bid for the rights to make the latest models.
If Sunderland's business proposition ceases to be cost effective due to Brexit tariifs, they'll just build the latest model in one of their other plants and run down Sunderland.
Human Skills are largely irrelevant now that automation is widespread, so that is not an issue.
Mercedes builds some C-class in South Africa, BMW builds in India.Hard Brexit now!
#prayfornodealComment
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Originally posted by GB9 View PostI thought a lot of it was because we gave them massive subsidies and big contracts to build stuff for us.
As our exported goods are now cheaper you would have thought it sensible to be based here.
Do you seriously think these companies would not at the very least consider their options, if the UK was no longer a member of the single market? As I previously stated there are multiple reasons why an international firm could choose to locate in the UK, single market access being one of them. Only a person living in complete denial would think that loss of tariff free trade with the worlds largest single market, would not at the very least prompt an assessment of options. That is not sabre rattling, it's just sensible management.Comment
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Originally posted by DodgyAgent View PostAs a Brexiteer and in the interests of Objectivity this news is inevitable and it is worrying. How much is bluff however and are these companies realiy going to up sticks and move and if so where?
I still feel ultimately some sort of compromise will have to be achieved which will end up pleasing nobody(I guess that's the definition of a good compromise!)Comment
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Originally posted by sirja View PostI really don't think big Jap car manufactures, Pharmaceuticals or financial institutions are located here, because of subsides.
Do you seriously think these companies would not at the very least consider their options, if the UK was no longer a member of the single market? As I previously stated there are multiple reasons why an international firm could choose to locate in the UK, single market access being one of them. Only a person living in complete denial would think that loss of tariff free trade with the worlds largest single market, would not at the very least prompt an assessment of options. That is not sabre rattling, it's just sensible management.
But if they hadn't had access to the single market they wouldn't have bothered.Hard Brexit now!
#prayfornodealComment
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The car assembly plants got big kickbacks to set up here, but that cash is long since gone.
Most of the pharmas/medical companies have offices in the UK because of supply to the NHS - responsible for >30% (for some the figure is close to 50%) of the turnover for their European business. But the companies themselves are registered in Ireland. I would expect to see downsizing of operations here if the NHS is privatised. They also tend to have a small warehouse in the UK, while the majority of their deliveries come from EU based warehousing (particularly from Belgium).
We may do some assembly in the UK, but we are not a centre for manufacturing or distribution.…Maybe we ain’t that young anymoreComment
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