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Old 9th Dec 2016, 17:33
  #5354 (permalink)  
Join Date: Oct 2002
Location: West Wiltshire, UK
Age: 67
Posts: 369
I'm sure that companies like Volkswagen, PSA etc will not want to restrict sales of their cars into the UK market, nor will they want to support anything that causes such a restriction. The same goes for any number of EU companies that sell to us.

Those companies have a surprising amount of clout within the EU; I've seen first hand how the EU bends over backwards to support and favour anything that's beneficial to EU companies.

That puts us in a pretty strong position, as we can argue that if the EU decides to put high tariffs on UK supplied goods or services, we will do the same to EU supplied goods and services. I am sure the pain that would bring to the EU is greater than that which would be inflicted on ourselves!

Additionally, we might find it beneficial to offer incentives to companies like Nissan, Toyota etc, so that we are a more attractive market for them. The Japanese manufacturers already have an advantage, as UK spec cars are very similar to Japanese spec, in terms of being RHD. Arguably, having better deals with Japanese car makers might well lower car prices in the UK overall, and reduce the number of cars we buy from the EU.

We are still a large economy, in global terms, and no trade partner can ignore that for long without suffering themselves. The car market is a good example, as we've already seen how the inability of UK manufacturers to compete led to the complete collapse of the UK car manufacturing business. With the exception of some very small, low volume, manufacturers, the UK now only manufactures cars for overseas companies. Losing all PSA vehicles, plus all VAG group vehicles, from the UK market wouldn't cause us a great deal of harm, especially if we had cheaper Japanese alternatives. There would be an issue with those employed by PSA and VAG here, but the numbers are relatively small when compared to companies like Nissan.
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