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Old 4th Aug 2019, 09:22
  #755 (permalink)  
Join Date: May 2003
Location: London/Oxford/New York
Posts: 2,257

What has it got to do with Brexit?

Well, the deep crisis facing the automotive sector, which you are right to identify, involves foreign owned companies. Now on top of this crisis they have Brexit to deal with, with massive disruption to their just in time delivery schedules and tariffs on components and complete vehicles, not to mention the free movement of their staff and employees, both actual and potential. So, what do these companies do to alleviate this crisis? They cut back, and if they have to cut back where best to cut back? In that country that has just erected its own trade barriers and tariffs thereby making existing factories uneconomic, so they close or downsize them in the UK first and foremost, potentially dealing with two issues at once. And the end result is the almost complete eradication of one of our most successful manufacturing industries employing almost a million people directly and many more in the associated supply chains. Add this to the companies who set up here in the first place to manufacture for the EU, and export some 80% of their output to it, and react by relocating their manufacturing plant within the EU, and UK companies who export components to the EU losing business as that will threaten the EU content of their customers end product, and I think that you will see that this has rather a LOT to do with Brexit!
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