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Airbus warns about no-deal Brexit

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Airbus warns about no-deal Brexit

Old 22nd Jun 2018, 08:07
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Airbus warns about no-deal Brexit

Airbus have said a no-deal scenario directly threatens Airbus' future in the UK. What do Prooners think about that? In my view it would be a disaster for Britain's aviation industry.

https://www.bbc.com/news/business-44570931

https://www.flightglobal.com/news/ar...ations-449655/

Last edited by Bergerie1; 22nd Jun 2018 at 08:51.
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Old 22nd Jun 2018, 08:16
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There will be many large companies in the same position. They have largely kept silent, presumably under pressure from some inside the British government. Land Rover last week chose to move more of its manufacturing to Slovakia (or Slovenia). It will be interesting to see if Airbus have triggered other companies to speak up.
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Old 22nd Jun 2018, 09:38
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Chickens starting to come home to roost - no doubt the Brexiteers will say we can partner with China, India & S Korea....................
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Old 22nd Jun 2018, 09:41
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The issue cuts both ways. Airbus would be unlikely to find a more experienced lot to produce wings outside of the UK. Shooting themselves in the foot, I think.
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Old 22nd Jun 2018, 09:50
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Originally Posted by vapilot2004 View Post
The issue cuts both ways. Airbus would be unlikely to find a more experienced lot to produce wings outside of the UK. Shooting themselves in the foot, I think.
Have you joined the "They need us more than we need them" club? Airbus are more than capable of training a new workforce in Europe, USA and China and there aren't many slate quarry jobs left in Wales.
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Old 22nd Jun 2018, 09:52
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I don't understand this, Isn't Airbus a joint venture between various nations? Isn't Airbus UK more than just a European company that has chosen to base some of it's manufacturing in the UK? Surely there is some historical deal that says some of the facilities need to stay in the UK and all other nations involved?

Reading the news reports it seems production may go to China or elsewhere outside the EU. Why will the UK leaving the EU mean facilities cannot stay in the UK but can go to China or other countries outside the EU?
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Old 22nd Jun 2018, 09:57
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If it was just down to hard cash/cost, they'd have gone to China before now. I'm with felixflyer on this one though I can't help but think there might be some politics being played too. Largest partners in Airbus? Germany and France? Largest partners in EU? let me guess. Maybe I'm just getting (too) cynical in my old age but................................
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Old 22nd Jun 2018, 10:00
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Originally Posted by felixflyer View Post
I don't understand this, Isn't Airbus a joint venture between various nations? Isn't Airbus UK more than just a European company that has chosen to base some of it's manufacturing in the UK? Surely there is some historical deal that says some of the facilities need to stay in the UK and all other nations involved?

Reading the news reports it seems production may go to China or elsewhere outside the EU. Why will the UK leaving the EU mean facilities cannot stay in the UK but can go to China or other countries outside the EU?
Airbus is a European company involving France, Germany and Spain. Not sure about Italy. BAE sold it's stake in Airbus in 2007, a very short sighted move I think.
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Old 22nd Jun 2018, 10:02
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Originally Posted by brakedwell View Post
Airbus is a European company involving France, Germany and Spain. Not sure about Italy. BAE sold it's stake in Airbus in 2007, a very short sighted move I think.
helped the bonus pool probably
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Old 22nd Jun 2018, 10:04
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From the Airbus website:

http://www.airbus.com/be-an-airbus-supplier.html:
Around 80% of Airbus’ activity is sourced. The company works with more than 12,000 suppliers worldwide that provide products and services for flying and non-flying parts. Airbus continuously develops its supplier base, with an overall sourcing volume across the company valued at approximately €49.6 billion. Airbus has identified global sourcing as one of its long-term objectives and aims to source 40% outside Western Europe and the U.S. by 2020. Airbus’ external procurement is equivalent to over two-thirds of the company’s revenues
Why, therefore, should it matter if the UK is outside the EU?
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Old 22nd Jun 2018, 10:09
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It shouldn't. The fact they are looking at China and the USA proves this.

I think they are just using Brexit as an excuse to do something they were probably already looking at doing anyway.

Hey ho. That leaves us with thousands of skilled workers. Time to reopen Brooklands I think.
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Old 22nd Jun 2018, 10:11
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Originally Posted by Wig Wag View Post
From the Airbus website:

http://www.airbus.com/be-an-airbus-supplier.html:

Why, therefore, should it matter if the UK is outside the EU?
Those parts have to reach the assembly facilities seemlessly. Gridlock at UK ports after a hard brexit will clog up the supply lines and cause expensive delays. Standby by for similar announcements from Nissan, Honda and Toyota.
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Old 22nd Jun 2018, 10:12
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Originally Posted by felixflyer View Post
It shouldn't. The fact they are looking at China and the USA proves this.

I think they are just using Brexit as an excuse to do something they were probably already looking at doing anyway.

Hey ho. That leaves us with thousands of skilled workers. Time to reopen Brooklands I think.
They know what the trading relationships are with almost all other countries. Who knows what the UK relationship will be. Certainly not the UK government.
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Old 22nd Jun 2018, 10:15
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In 2005 Airbus said its target was to have 50% of its components produced outside the EU. The current figure is about 25%. Strangely paperwork and customs donít appear to be an issue.

Every little helps.....
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Old 22nd Jun 2018, 10:17
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Meanwhile, on the US trade war, Jean-Claude Juncker says "we will do what we have to do to safeguard the EU". Perhaps he might say whether he thinks EU trade with the UK (currently world's 5th largest economy) also needs safeguarding, and if so, what positive action is he taking to do so?

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Old 22nd Jun 2018, 10:18
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Originally Posted by felixflyer View Post
It shouldn't. The fact they are looking at China and the USA proves this.

I think they are just using Brexit as an excuse to do something they were probably already looking at doing anyway.

Hey ho. That leaves us with thousands of skilled workers. Time to reopen Brooklands I think.
The point is businesses are ALWAYS looking. So what advantage does one location have over another? For a long time part of the UK's advantage was that we were in the EU thus it was very easy to move people and stuff between locations. In the future that won't apply so in the long term, why come here when there is additional hassle over somewhere within the EU. If you're considering locations outside the EU...why come here at all?

In the short term (like the next 2 or 3 years) then complete chaos is the problem, unknown regulatory structure, unknown border crossing etc etc. How do you plan a production line if you have no idea how things will get from A to B.
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Old 22nd Jun 2018, 10:20
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"It shouldn't. The fact they are looking at China and the USA proves this.

I think they are just using Brexit as an excuse to do something they were probably already looking at doing anyway."

'Never waste a good crisis.' This maxim is used by corporations, as well as politicians.
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Old 22nd Jun 2018, 10:25
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Originally Posted by Iron Duck View Post
"It shouldn't. The fact they are looking at China and the USA proves this.

I think they are just using Brexit as an excuse to do something they were probably already looking at doing anyway."

'Never waste a good crisis.' This maxim is used by corporations, as well as politicians.
There are assembly plants in China and the USA.
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Old 22nd Jun 2018, 10:25
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If you are looking at the short term then you can forget about setting up a new factory and associated infrastructure, training staff and organising supply chains.

Brexit would be long sorted and over any chaotic term well before any of this could be set up elsewhere.
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Old 22nd Jun 2018, 10:26
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Originally Posted by felixflyer View Post
If you are looking at the short term then you can forget about setting up a new factory and associated infrastructure, training staff and organising supply chains.

Brexit would be long sorted and over any chaotic term well before any of this could be set up elsewhere.
You must be dreaming, unless brexit is cancelled.
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