Nissan scraps plan to build new X-Trail model in Britain

[steve187]

22 hours ago, Chomper Higgot said:

Oh so it’s not a ‘Project Fear’ rumour.

 

EU Japan Free Trade Agreement ‘kicks in’.

 

Another home goal for Brexit.

surely that just means its now cheaper to build abroad and export to the EU, now there is no 10% tariff. nothing to do with brexit, otherwise all car production would be transferred out of the UK. 

[Chomper Higgot]

12 minutes ago, steve187 said:

surely that just means its now cheaper to build abroad and export to the EU, now there is no 10% tariff. nothing to do with brexit, otherwise all car production would be transferred out of the UK. 

No it means the UK is flouncing out the door and leaving tariff free trade with both Europe and Japan behind.

[steve187]

4 minutes ago, Chomper Higgot said:

No it means the UK is flouncing out the door and leaving tariff free trade with both Europe and Japan behind.

so its not cheaper to build in Japan.

 

flouncing, we are not 'stomping' out the door we are taking the route that was voted on democratically

Edited February 5, 2019 by steve187

[bristolboy]

27 minutes ago, steve187 said:

surely that just means its now cheaper to build abroad and export to the EU, now there is no 10% tariff. nothing to do with brexit, otherwise all car production would be transferred out of the UK. 

What do you mean by "no 10% tariff"? Once Brexit takes effect, there will be for the first time a 10% tariff on vehicles manufactured in the UK and exported to the EU. 80% of passenger cars manufactured in the UK are exported. 54% of those went to the UK in 2017.

https://www.acea.be/news/article/fact-sheet-brexit-and-the-auto-industry

[Spidey]

17 minutes ago, steve187 said:

flouncing, we are not 'stomping' out the door we are taking the route that was voted on democratically

And taking many thousands of British workers jobs with you. Well done.

[mick220675]

Listening to UK radio this morning it would appear the X-trail is unlikely to be sold in any EU country as it has proved to difficult for the large diesel SUV to meet EU emission rules.

 

The car will be built in japan so it can be sold to Asian country's who are less strict about emissions.

 

It would appear Nissan will still receive UK government money to fund development and production of less polluting cars.

[steve187]

2 hours ago, bristolboy said:

What do you mean by "no 10% tariff"? Once Brexit takes effect, there will be for the first time a 10% tariff on vehicles manufactured in the UK and exported to the EU. 80% of passenger cars manufactured in the UK are exported. 54% of those went to the UK in 2017.

the op states that that a 10% tariff will be ended so cars made in Japan will be cheaper to build than in the UK, and tariff free to export to EU, also no-one wants diesel cars now in the EU and UK

[welovesundaysatspace]

4 minutes ago, steve187 said:

no-one wants diesel cars now in the EU and UK

I doubt that. It’s still a long way till we have all the infrastructure ready for electronic cars. Until then, Diesel cars will be still preferred over Petrol cars. 

[nahkit]

6 hours ago, Spidey said:

Nissan have had a large manufacturing plant, in Sunderland, for many years. It's continued existence relies upon securing new models for production. No new models to produce and production falls to zero, causing the plant to close. This decision will result in the loss of thousands of jobs in the North East.

 

Ironic that the people of the N.E. voted for Brexit by a much higher majority than the national average.

 

Talk about turkeys voting for Christmas....

 

" The carmaker's planned investment in the next-generation Juke and Qashqai models, which was also announced in 2016, was unaffected, the firm said on Sunday. "

 

If the X-Trail had been built in Sunderland it would of added hundreds of jobs but as it stands, nobody at the plant has lost their job as a result of the decision to produce it in Japan.

[tebee]

7 hours ago, steve187 said:

surely that just means its now cheaper to build abroad and export to the EU, now there is no 10% tariff. nothing to do with brexit, otherwise all car production would be transferred out of the UK. 

To some people, nothing will ever be the fault of brexit 

[steve187]

30 minutes ago, tebee said:

To some people, nothing will ever be the fault of brexit 

some things will, but this isn't, move on and accept the result

 

[bristolboy]

5 hours ago, welovesundaysatspace said:

I doubt that. It’s still a long way till we have all the infrastructure ready for electronic cars. Until then, Diesel cars will be still preferred over Petrol cars. 

Quite the contrary.

 

UK car sales drop as diesel demand plummets for 14th month in a row

https://www.independent.co.uk/news/business/news/uk-car-sales-latest-may-diesel-demand-drop-petrol-hybrid-vehicles-smmt-a8383841.html

 

Diesel car sales 'to plummet to 5% by 2030'

https://www.bbc.com/news/business-44687784

 

[welovesundaysatspace]

1 hour ago, bristolboy said:

Quite the contrary.

 

UK car sales drop as diesel demand plummets for 14th month in a row

https://www.independent.co.uk/news/business/news/uk-car-sales-latest-may-diesel-demand-drop-petrol-hybrid-vehicles-smmt-a8383841.html

 

Diesel car sales 'to plummet to 5% by 2030'

https://www.bbc.com/news/business-44687784

 

That doesn’t support the claim that I was questioning. 

[sanemax]

10 hours ago, Spidey said:

And taking many thousands of British workers jobs with you. Well done.

Although Nisan stated that there will be no UK job losses

[Spidey]

4 minutes ago, sanemax said:

Although Nisan stated that there will be no UK job losses

So who would have built the X-Trail if production had gone to Sunderland? Would the existing workers have built it in their spare time?

[sanemax]

6 minutes ago, Spidey said:

So who would have built the X-Trail if production had gone to Sunderland? Would the existing workers have built it in their spare time?

There is a difference between job losses and (no) jobs created 

Nissan will stop producing new Desisel cars after 2012 ...............well there are numerous reasons why Nissan want to build cars in Japan and Bexist isnt one of them

[bristolboy]

1 minute ago, sanemax said:

There is a difference between job losses and (no) jobs created 

Nissan will stop producing new Desisel cars after 2012 ...............well there are numerous reasons why Nissan want to build cars in Japan and Bexist isnt one of them

So if Brexit was not a consideration for their plans, why did the UK government see fit to bribe them?

[Spidey]

1 minute ago, sanemax said:

There is a difference between job losses and (no) jobs created 

Nissan will stop producing new Desisel cars after 2012 ...............well there are numerous reasons why Nissan want to build cars in Japan and Bexist isnt one of them

So what you are trying to say is that they would have employed more workers if the X-Trail had gone to Sunderland. I'm sorry if it doesn't fit your agenda but that's a net loss of jobs.

 

Strange that you believe Nissan when they say that there will be no job losses but you don't believe them when they say that the decision was due to Brexit issues. More agenda issues?

[sanemax]

Just now, Spidey said:

 

Strange that you believe Nissan when they say that there will be no job losses but you don't believe them when they say that the decision was due to Brexit issues. More agenda issues?

Stop making things up , Nissan didnt say the decision was due to Brexit .

Japan  have a new trade deal with the E.U and now they no longer need to make cars in Europe and they decided to make new cars in their own Country

[Spidey]

2 minutes ago, sanemax said:

Stop making things up , Nissan didnt say the decision was due to Brexit .

Japan  have a new trade deal with the E.U and now they no longer need to make cars in Europe and they decided to make new cars in their own Country

On ‎2‎/‎3‎/‎2019 at 11:16 PM, webfact said:

LONDON (Reuters) - Carmaker Nissan has scrapped plans to build its new X-Trail SUV in Britain and will produce it solely in Japan, warning two months before Brexit that uncertainty over Britain's departure was making it harder to plan for the future.

From the OP.

[SheungWan]

12 hours ago, bristolboy said:

So if Brexit was not a consideration for their plans, why did the UK government see fit to bribe them?

Exactly.

[SheungWan]

When a new shopping mall is planned, the first thing for the developers is to secure 'anchor' tenants. Once the anchor tenants are secured the rest will hopefully follow. And once the anchor tenants leave the rest start to leave and what one is left with is the bargain basement, never-ending sales of the pound-stretcher type. Nissan are in the anchor category as far as British manufacture is concerned and their decision to bail out of a new product production is a very important signal to others who may be considering the same. The fact that the decision was made prior to March 31 cannot be lost on the British establishment of what they are heading into. They have been warned. Theresa May may be running hither and thither, but central to the current impasse is the British Party's insistence (all of them) that they can continue to have their cake and eat it too. Well, Nissan (and add UBS) are pointing out that there is a price to pay. Indeed there is.

[Grouse]

2 hours ago, SheungWan said:

When a new shopping mall is planned, the first thing for the developers is to secure 'anchor' tenants. Once the anchor tenants are secured the rest will hopefully follow. And once the anchor tenants leave the rest start to leave and what one is left with is the bargain basement, never-ending sales of the pound-stretcher type. Nissan are in the anchor category as far as British manufacture is concerned and their decision to bail out of a new product production is a very important signal to others who may be considering the same. The fact that the decision was made prior to March 31 cannot be lost on the British establishment of what they are heading into. They have been warned. Theresa May may be running hither and thither, but central to the current impasse is the British Party's insistence (all of them) that they can continue to have their cake and eat it too. Well, Nissan (and add UBS) are pointing out that there is a price to pay. Indeed there is.

Well said! Good to see you back on form!

[Grouse]

https://www.globaleducation.edu.au/case-studies/globalisation-car-industry.html

 

This is a nice teaching aid and looking at Australia's car manufacturing industry is sobering. Nissan pulled out of Australia completely

 

I would have thought that shipping cars around the globe would be expensive and environmentally harmful. Any idea what the cost is?

 

The EU should slap a flat rate environmental surcharge on cars imported from other continents.

[Grouse]

Decisions on where to locate manufacturing plants is non trivial and multi faceted 

 

https://www.nytimes.com/2008/08/03/business/worldbusiness/03global.html

 

I was involved in moving a former IBM munufacturing facility from Portsmouth to Lamphun. Even at 100% capacity, it was not profitable to manufacture in the U.K. Because of Labour costs. This was state of the art electronics assembly of bare semi conductors onto flexible substrates. Clients were everyone you have ever heard of in electronics. Essentially the clever bits of HDDs, DVDs etc. Millions of them.

 

Several hundred redundancies. 50 engineers came to Thailand and never went home! IBM type packages with hardship posting allowance! You get the picture!

 

So why am I telling you this? Because it is relevant.

 

I guess Nissan began manufacturing high volume vehicles in the UK for multiple reasons

 

1) Tariff free access to very large market

2) Save shipping costs

3) Government won the bribe bidding process

4) Low labour rates

5) Skilled workforce

6) Local engineering and management

7) Acceptable if not ideal infrastructure

 8 ) Solid business environment including accounting, legal, banking

9) English is a global language

 

So these are non trivial, high risk decisions

 

Why have Nissan decided to manufacture in Japan? The risks out weigh the advantages.

 

1) Nissan do not wish to risk tariffs

2) Japan now has a deal with the EU

3) If UK ends up having to pay tariffs shipping to EU that kills the pig

4) Exchange rates operate both ways. Certainly a low exchange rate is good for labour costs. But not good for imported components or imported plant,

 

In short, IMO, the Nissan issue is a UK own goal. If we had stayed in SM and CU, Nissan would stay in perpetuity and manufacture electric, petrol and advanced diesels here. Nissan are a high tech company. 

 

It's a disaster

Edited February 6, 2019 by Grouse

[bristolboy]

It bears repeating that over half of uk passenger vehicle exports are sent to the EU. And that's not a trivial number considering that 80 percent of passenger vehicles manufactured in the UK are bound for export. 43.2 percent of all passenger vehicles manufactured in UK are destined for the EU.

[tomacht8]

1 hour ago, Grouse said:

https://www.globaleducation.edu.au/case-studies/globalisation-car-industry.html

 

This is a nice teaching aid and looking at Australia's car manufacturing industry is sobering. Nissan pulled out of Australia completely

 

I would have thought that shipping cars around the globe would be expensive and environmentally harmful. Any idea what the cost is?

 

The EU should slap a flat rate environmental surcharge on cars imported from other continents.

The logistics costs of the automotive industry are estimated at 8% -10% of net sales. If one considers that the EBIT per vehicle is between 3.5% - 8%, depending on the brand, it becomes clear how critical the logistics costs are.

 

The manufacturers have focused on the greatest value-added potential of their productions:

- Close communication with all suppliers. 

- simultaneous engineering

- Just in time concepts

- modular product concepts

- Automation and robotic.

 

Automobile production is one of the most sensitive and networked structures.

 

There is an event like Brexit already a hard hit between the legs for the affected market players.

 

The same applies to aircraft production.

Edited February 6, 2019 by tomacht8

[bomber]

On 2/5/2019 at 6:26 AM, nahkit said:

" The carmaker's planned investment in the next-generation Juke and Qashqai models, which was also announced in 2016, was unaffected, the firm said on Sunday. "

 

If the X-Trail had been built in Sunderland it would of added hundreds of jobs but as it stands, nobody at the plant has lost their job as a result of the decision to produce it in Japan.

700 were to be created though.

[Grouse]

On 2/5/2019 at 6:35 PM, sanemax said:

Stop making things up , Nissan didnt say the decision was due to Brexit .

Japan  have a new trade deal with the E.U and now they no longer need to make cars in Europe and they decided to make new cars in their own Country

Facile. Ask somebody to explain. I posted a long message on this and I'm not doing it again

 

Nissan has effectively pulled the plug. Four years from now they will closed

 

Sorry for the apprentices...

 

Of course worker Epsilons won't understand any of it. Nissan are not fools, they don't want that kind of workforce. Not bushido!

Edited February 6, 2019 by Grouse

[sanemax]

2 minutes ago, Grouse said:

 

Nissan has effectively pulled the plug. Four years from now they will closed

 

Is that true ?

Have Nissan announced that they are closing down all their UK factories ?