UK carmakers urge Brexit delay rather than no-deal exit

By Costas Pitas

 

FILE PHOTO: Cars readied for export are parked next to a vehicle storage facility on the dockside at the ABP port in Southampton, Britain August 16, 2017. REUTERS/Peter Nicholls

 

LONDON (Reuters) - Britain should delay Brexit beyond Oct. 31 rather than leave the European Union without a deal which is a particular threat to large automakers, the head of the sector’s industry body told Reuters on Friday.

 

As the United Kingdom spins towards an election, Brexit remains up in the air more than three years after Britons voted to leave the bloc in a 2016 referendum. Options range from a turbulent ‘no-deal’ exit to abandoning the whole endeavour.

 

The autos sector, the country’s biggest exporter of goods, has been one of the most vocal opponents of a no-deal Brexit, warning that production would be hit with tariffs, border delays and new bureaucracy, ruining the viability of many plants.

 

“Leaving without a deal would be the worst outcome,” the Chief Executive of the Society of Motor Manufacturers of Traders (SMMT) Mike Hawes told Reuters.

 

“If it takes an extra couple of months to get that deal, I think the industry would put up with that,” he said.

 

Figures published by the SMMT in July showed investment in Britain’s car sector fell by more than 70 percent in the first half of the year to 90 million pounds, although a major investment by Jaguar Land Rover will boost the full-year figure.

 

“Investment in the UK has effectively stopped,” said Hawes.

 

“It has, because they (investors) fear no-deal. That will make it very, very difficult to continue to have the certainty and confidence to invest in the UK.”

 

-- © Copyright Reuters 2019-09-06

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Its not just anti "no deal brexit", they are anti any kind of brexit. Every part of the British automotive industry will be negatively affected. Ironically Nissan may now leave having shelved any new models or expansion.

Edited September 6, 20196 yr by Airbagwill

14 minutes ago, Airbagwill said:

Its not just anti "no deal brexit", they are anti any kind of brexit. Every part of the British automotive industry will be negatively affected. Ironically Nissan may now leave having shelved any new models or expansion.

Real and probably permanent damage has been done to the UK manufacturing industry by conservatives that claimed to back business. Absolute disgrace and a wrecking ball to some our economic crown jewels. A Corbyn government / coalition would be a better friend to business and the working class than this shower of sheet. The shameless no-deal nutters here on TVF have thankfully been defeated  yet still they parrot the mindless slogans of their populist puppet masters. 

Edited September 6, 20196 yr by beautifulthailand99

Regardless of who runs the country, you cant have an i dustry that relies on importing parts and materials and exporting product that faces tarriffs in both directions.

Bit quiet so far.  Where are all the "project fear" chanters today?

Assuming that this will happen,

will there be an election before or after the negotiations?

who will be in power to negotiate the deal

Tory, Labour, Lib/Dem, Greens?

Who will be the PM?

who will be in the negotiation team

what will be the deal?

WILL the EU accept such an extension? Germany perhaps, France Non, the rest barely matter.

Will the UK parliament accept the deal?

Will the UK population accept the deal and delay?

 

This is NOT project fear from me but a few simple questions that IMHO need to be answered before the UK and the EU go much further.

12 minutes ago, billd766 said:

Assuming that this will happen,

will there be an election before or after the negotiations?

who will be in power to negotiate the deal

Tory, Labour, Lib/Dem, Greens?

Who will be the PM?

who will be in the negotiation team

what will be the deal?

WILL the EU accept such an extension? Germany perhaps, France Non, the rest barely matter.

Will the UK parliament accept the deal?

Will the UK population accept the deal and delay?

 

This is NOT project fear from me but a few simple questions that IMHO need to be answered before the UK and the EU go much further.

Well nobody knows for sure but I wouldn't be surprised if Johnson does agree a deal with the EU rather than dying in a ditch. I think he will fold and end up accepting a tweaked May deal  Then blame everyone else as he always does.  Would parliament pass it? I think they would because then we could get on with a general election and finally bury Brexit.

17 hours ago, Airbagwill said:

Its not just anti "no deal brexit", they are anti any kind of brexit. Every part of the British automotive industry will be negatively affected. Ironically Nissan may now leave having shelved any new models or expansion.

As everybody with some knowledge could expect.

The British ( but mostly German of Japanese owned) car makers are welcome in the EU. BMW-Mini already decided for Borne - NL and Honda.. goes back to Japan, as from there no (10% ! ) import duty for Japanese made cars in the the EU. 

55% of the components are already made at this side of the cod pool

5 minutes ago, dunroaming said:

Well nobody knows for sure but I wouldn't be surprised if Johnson does agree a deal with the EU rather than dying in a ditch. I think he will fold and end up accepting a tweaked May deal  Then blame everyone else as he always does.  Would parliament pass it? I think they would because then we could get on with a general election and finally bury Brexit.

The problem with that is that Boris may not be "permitted" to do the negotiating as his hands are now tied behind his back by parliament and Gina Millar court cases.

 

As my Mum used to say, "This is getting to be a right buggers muddle".

 

https://www.urbandictionary.com/define.php?term=<deleted>'s Muddle

 

1. Mess
2. Confusion caused by incompetence and/or lack of organisation
3. Complete cock up
4. Unsatisfactory result, often with comic consequences
5. Misguided effort
6. Fiasco
7. Result of failure to recognise consequences

Believed to have been in common usage in the British armed forces from WW2, now (2007) largely anachronistic and used by older persons who remember it or have parents who did... may link to the phrase "Don't let the buggers get you down" which probably refers primarily to the bullying of private soldiers during induction training by non commissioned officers.

41 minutes ago, dunroaming said:

Bit quiet so far.  Where are all the "project fear" chanters today?

Crying about their much less worth British pounds...

46 minutes ago, dunroaming said:

Bit quiet so far.  Where are all the "project fear" chanters today?

so you believe that the auto industry in UK will be unaffected by Brexit?

The British car industry has been massacred, at this time we still have the ability to make cars, the factories and the workers, as time goes by we will lose them.

 

The only saving grace is that we have the factories, the expertise and the workers ready to go when Brexit is sorted, probably just at the right time to switch to mass production of electric cars, just depends how Brexit pans out as to who may want to invest in UK.PLC and nothing will happen until brexit is sorted or A50 is revoked.  

3 minutes ago, Basil B said:

ight time to switch to mass production of electric cars,

I think you need to look the rest of the world and see what they are doing ALREADY.

32 minutes ago, billd766 said:

Boris may not be "permitted" to do the negotiating as his hands are now tied

You know the EU can see and hear all this - they aren't deaf and dumb they can work out Bris's "strategy" it ain't rocket science - it ain't even good poker.

2 minutes ago, Airbagwill said:

I think you need to look the rest of the world and see what they are doing ALREADY.

I do not know what the rest of the world is doing, I know the is already development in Batteries for Electric cars in the UK and to reduce dependency on fossil fuels and reduce carbon emission we need to be producing a lot more electric vehicle than we are.   

19 minutes ago, Airbagwill said:

so you believe that the auto industry in UK will be unaffected by Brexit?

The auto industry will be badly affected by Brexit as will many industries.  Brexit is terrible for the UK on many levels and as far as I am concerned there is no upside whatsoever.

 

But the country is so badly split due to the ludicrous first referendum and we are already billions of pounds poorer so we must look at damage limitation. A soft Brexit staying in the customs union and the single market is the best we can hope for now, in my opinion.  A second referendum will just increase the vitriol and as much as I want Brexit binned, I don't think that is going to happen anymore.  But obviously I would like to be proved wrong.

3 minutes ago, Airbagwill said:

You know the EU can see and hear all this - they aren't deaf and dumb they can work out Bris's "strategy" it ain't rocket science - it ain't even good poker.

You’re being very generous in calling what johnson is doing a strategy. 

1 minute ago, dunroaming said:

A soft Brexit staying in the customs union and the single market is the best we can hope for now, in my opinion. 

Tripe!

2 minutes ago, dunroaming said:

The auto industry will be badly affected by Brexit as will many industries.  Brexit is terrible for the UK on many levels and as far as I am concerned there is no upside whatsoever.

 

But the country is so badly split due to the ludicrous first referendum and we are already billions of pounds poorer so we must look at damage limitation. A soft Brexit staying in the customs union and the single market is the best we can hope for now, in my opinion.  A second referendum will just increase the vitriol and as much as I want Brexit binned, I don't think that is going to happen anymore.  But obviously I would like to be proved wrong.

That’s one option.  Or we could raze the country and make a fortune laundering Russian money

1 minute ago, Airbagwill said:

Tripe!

Onions! Mince! Oxo gravy

11 minutes ago, Basil B said:

The British car industry has been massacred, at this time we still have the ability to make cars, the factories and the workers, as time goes by we will lose them.

 

The only saving grace is that we have the factories, the expertise and the workers ready to go when Brexit is sorted, probably just at the right time to switch to mass production of electric cars, just depends how Brexit pans out as to who may want to invest in UK.PLC and nothing will happen until brexit is sorted or A50 is revoked.  

The combustion engine is dead in the water and traditional car manufacturing the same.  The market is sure to shrink and those who can adjust accordingly will survive.  Of course cars are not just about the engines but it does affect the skill sectors somewhat.

13 minutes ago, StreetCowboy said:

That’s one option.  Or we could raze the country and make a fortune laundering Russian money

Maybe we should sell Britain to Donald Trump and all go and live in Europe.

18 minutes ago, StreetCowboy said:

That’s one option.  Or we could raze the country and make a fortune laundering Russian money

I think we already do that don't we.  We have always been good at attracting dodgy money to the UK

22 minutes ago, Airbagwill said:

Tripe!

Never liked tripe but I do concede it is still eaten in some places in the UK.

1 hour ago, Airbagwill said:

so you believe that the auto industry in UK will be unaffected by Brexit?

Actually I am confused.  My post was "bit quiet, where are all the project fear chanters today".

 

How does that translate to me believing that the auto industry will be unaffected by Brexit?  Quite the most strange response I can imagine and about as off target as you can possibly get.  Would you like to clarify?

Just now, dunroaming said:

Actually I am confused.  My post was "bit quiet, where are all the project fear chanters today".

 

How does that translate to me believing that the auto industry will be unaffected by Brexit?  Quite the most strange response I can imagine and about as off target as you can possibly get.  Would you like to clarify?

Your knowledge  of trope Brexit the motor industry and the English language is letting you down.

1 minute ago, Airbagwill said:

Your knowledge  of trope Brexit the motor industry and the English language is letting you down.

Elaborate

22 minutes ago, dunroaming said:

Elaborate

Hmmm.....

19 hours ago, beautifulthailand99 said:

Real ex and probably permanent damage has been done to the UK manufacturing industry by conservatives that claimed to back business. Absolute disgrace and a wrecking ball to some our economic crown jewels. A Corbyn government / coalition would be a better friend to business and the working class than this shower of sheet. The shameless no-deal nutters here on TVF have thankfully been defeated  yet still they parrot the mindless slogans of their populist puppet masters. 

Corbyn was offered a general election and bottled.it,better friend to buisness?you having a bubble? Once momentum gets in there won,t be any businesses left.no deal nutters?it's all the remainers that have ensured we,re. Not going  to get a deal

 

2 hours ago, puipuitom said:

Crying about their much less worth British pounds...

And how much the price Of clogs have gone up.