Reply to: Jaguar Land Rover to 'axe up to 5,000 jobs'

[meridian]

Jaguar Land Rover to 'axe up to 5,000 jobs'

Oh yes. In this case it's constantly recruiting cheap labour so the BigCo's have a better chance of making large profits. If the cheap labour runs out, everything falls on its arse. It's a slight twist on the traditional Ponzi scheme, which relies on an increasing number paying in to an investment scheme, but the principal stands.

France and the U.K. are roughly the same size, both GDP and car manufacturing size.

What are the comparative wages for car manufacturing workers in each country?

[Mordac]

[QUOTE=Old Greg;2612640]

You don't know what a Ponzi scheme is, do you?

Oh yes. In this case it's constantly recruiting cheap labour so the BigCo's have a better chance of making large profits. If the cheap labour runs out, everything falls on its arse. It's a slight twist on the traditional Ponzi scheme, which relies on an increasing number paying in to an investment scheme, but the principal stands.

[Old Greg]

[QUOTE=Mordac;2612639]

Smoke and mirrors to begin with, and the heavy mob for when someone realises it's a giant ponzi scheme and tries to leave.

You don't know what a Ponzi scheme is, do you?

[Mordac]

[QUOTE=original PM;2612567]

I am not sure how much longer the EU can keep enticing people to the land of milk and honey when it appears no body has any money...

still i'm sure it will be fine.

Smoke and mirrors to begin with, and the heavy mob for when someone realises it's a giant ponzi scheme and tries to leave.

[meridian]

Is that because

a) We do not have the skills?
b) We do not have the trade agreements?
c) We do not have labour that will work for less than a pound a day?

Why do you think - for example Slovakia can produce Jaguars (and/or Land Rovers) for less then the UK?

a) They have better skills than us?
b) They have better trade agreements than us?
c) They have cheaper labour costs?

How long do you think it will be before even the workers of Slovakia become too expensive and demanding and production needs to move again elsewhere to where the workforce can be found for much cheaper.

It's back to the race to the bottom.

Germany and Spain both produce more cars than the U.K. France produces roughly the same number of units.

All three countries pay far more on average than the U.K.

The global car manufacturing wage gap: what do car factory workers earn? | Auto Express

Of those three countries, they (probably) don’t have better skills, better trade agreements, or cheaper labour costs.

So it’s clearly not an EU problem why the U.K. is eliminating manufacturing. Try looking closer to home.

[Old Greg]

If the EU is so bad how were the Polish able to increase their income 4 fold within 20 years ?

If the Brexit is so good why did UK wages in real terms go down last year.

You can't measure the value of Imperial weights and measures and a full range of banana curvatures in mere economic terms. This is about national independence.

[BlasterBates]

If the EU is so bad how were the Polish able to increase their income 4 fold within 20 years ?

If the Brexit is so good why did UK wages in real terms go down last year.

[BlasterBates]

Wages in Eastern Europe have increased 4 fold since they joined and you can keep repeating that, but it will always fall on deaf ears and the mantra of cheap wages in Slovakia will be repeated even when they're earning far more than anyone in Britain. There was a time when the Brits scoffed at cheap Japanese wages and then one day they put everyone in the UK out of business, whilst lauding it up with huge salaries in Japan.

[original PM]

[QUOTE=Mordac;2612563]

No need to worry, the EU will have recruited new members with plenty of cheap labour.

I am not sure how much longer the EU can keep enticing people to the land of milk and honey when it appears no body has any money...

still i'm sure it will be fine.

[Mordac]

[QUOTE=original PM;2612554]

Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing,/QUOTE]

Is that because

a) We do not have the skills?
b) We do not have the trade agreements?
c) We do not have labour that will work for less than a pound a day?

Why do you think - for example Slovakia can produce Jaguars (and/or Land Rovers) for less then the UK?

a) They have better skills than us?
b) They have better trade agreements than us?
c) They have cheaper labour costs?

How long do you think it will be before even the workers of Slovakia become too expensive and demanding and production needs to move again elsewhere to where the workforce can be found for much cheaper.

It's back to the race to the bottom.

No need to worry, the EU will have recruited new members with plenty of cheap labour.

[BlasterBates]

[QUOTE=original PM;2612554]

Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing,/QUOTE]

Is that because

a) We do not have the skills?
b) We do not have the trade agreements?
c) We do not have labour that will work for less than a pound a day?

Why do you think - for example Slovakia can produce Jaguars (and/or Land Rovers) for less then the UK?

a) They have better skills than us?
b) They have better trade agreements than us?
c) They have cheaper labour costs?

How long do you think it will be before even the workers of Slovakia become too expensive and demanding and production needs to move again elsewhere to where the workforce can be found for much cheaper.

It's back to the race to the bottom.

As I posted earlier car manufacturing hasn't been increasing over the last 10 years, so a decline would be a trend reversal not a continuation of what was already going on.

As for the cheaper workforce, wages have gone up 4 fold in Eastern European countries since they joined. No point in relocating because if cheap wages because they'll have caught up within a decade and given that approx. 80% cost of manufacturing is due to materials you will find lower wages not a significant factor. The vast bulk of cars manufactured in the EU are manufactured in high wage countries, especially Germany.

UK though will end up on a race to the bottom as manufacturing becomes increasingly costly in the UK.

[Old Greg]

[QUOTE=original PM;2612554]

Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing,/QUOTE]

Is that because

a) We do not have the skills?
b) We do not have the trade agreements?
c) We do not have labour that will work for less than a pound a day?

Why do you think - for example Slovakia can produce Jaguars (and/or Land Rovers) for less then the UK?

a) They have better skills than us?
b) They have better trade agreements than us?
c) They have cheaper labour costs?

How long do you think it will be before even the workers of Slovakia become too expensive and demanding and production needs to move again elsewhere to where the workforce can be found for much cheaper.

It's back to the race to the bottom.

Ask the ERG. They are the ones lauding Minford, who predicts such things. We just point it out to mock you.

[original PM]

[QUOTE]Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing,/QUOTE]

Is that because

a) We do not have the skills?
b) We do not have the trade agreements?
c) We do not have labour that will work for less than a pound a day?

Why do you think - for example Slovakia can produce Jaguars (and/or Land Rovers) for less then the UK?

a) They have better skills than us?
b) They have better trade agreements than us?
c) They have cheaper labour costs?

How long do you think it will be before even the workers of Slovakia become too expensive and demanding and production needs to move again elsewhere to where the workforce can be found for much cheaper.

It's back to the race to the bottom.

[Old Greg]

You will find that all car companies are struggling, Ford, GM and VW etc, so Brexit will be welcomed as it will ensure Jaguar Landrover is finished off, leaving the market open to the others.

Brexit could cut manufacturing exports by a third, experts warn | Politics | The Guardian



...and Minford is very much pro Brexit

Minford is the ERG's poster boy economist. They really should have put this on the side of a bus and driven it around Sunderland.

Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing

[BlasterBates]

And I imagine JLR will be a lot more fooked if they keep trying to blame their inability to manage a business on Brexit.

People will simply not buy their cars - they are pretty tulip anyway.

You will find that all car companies are struggling, Ford, GM and VW etc, so Brexit will be welcomed as it will ensure Jaguar Landrover is finished off, leaving the market open to the others.

Brexit could cut manufacturing exports by a third, experts warn | Politics | The Guardian

"Over time, if we left the EU, it seems likely that we would mostly eliminate manufacturing, leaving mainly industries such as design, marketing and hi-tech,” Minford wrote. “But this shouldn’t scare us."

...and Minford is very much pro Brexit