Guardian: Why Sunderland and Stoke are the Tomorrow's World of the UK Economy

ruggedtoast

http://www.guardian.co.uk/commentisfree/2011/jun/27/sunderland-stoke-uk-economy-manufacturing

The Sunderland plant is eye-opening for a columnist who has never seen a 500-tonne press stamp out car doors faster than a cook can cut pastry. It makes a car every 30 seconds at full tilt, sending most of them abroad. These undistinguished low-slung white sheds account for 1.4% of Britain's manufactured exports; 4,900 people work in the factory, which, says Nissan, supports 13,500 more jobs across the country.


I'd expected a place where Britishness had been subordinated: but this is more than an assembly plant following instructions sent from Tokyo. It feels part of the north-east. There is noise, pop music playing, a smell of oil and drying paint, sparks – and ironic cheers as the production line kicked back into life after a 30-minute lunch break.

The point of the article is that although all these companies are foreign owned they are still essentially British and contributing to the renaissance in skilled manufacturing here etc etc.

I am not that convinced about this. I used to teach English in Japan to businessmen, some of whom worked for car companies. They have production in the UK because its cheaper than having it in Japan and they cant yet get good enough quality control in places like China and Indonesia.

Several people smugly pointed out how embarrassing it must be for Britain, which used to lead the world in the auto manufacture, to now have to rely on Japanese companies to keep its workers in employment. They do not have any loyalty to the UK.

When they do all the "British" technological manufacturing wizardry will be getting on a boat and heading elsewhere, leaving empty warehouses and a lot of unemployed NVQ Level 3 people heading to the job centre.

Which is kind of the point, Germany, France, Korea, China and Japan are politically restricted from closing plants on home soil, but can do so very easily in the UK.

British car manufacturing is dead and will not be coming back in our lifetimes, but at some point we might manufacture something else. It would be nice if that company isnt sold off to foreigners at the first opportunity.

ILW

I the Sunderland Nissan plant unionised?

Conrad

ruggedtoast wrote: »

British car manufacturing is dead and will not be coming back in our lifetimes, but at some point we might manufacture something else. It would be nice if that company isnt sold off to foreigners at the first opportunity.

There is still high demand for British made cars such as Mini, Astin Martin, Jag and Range Rover.

Also keep in mind our net income flows from UK owned foreign located plant, are high. It isn't just the Japs that outsource.

Furthermore I am seeing a move away from some Japanese products in favour of British, German and American. For example this move has been stark in the recording industry where for example Oxford based Solid State Logic, or German based Acces music has clawed back from the likes of Yamaha and Roland. The reasons behind this is that in some areas the Japs are no longer the innovators as they have become stale and arrogant.

BTW, the reason China cannot compete with the West in terms of innovation any time soon, is because thier culture is at odds with an innovative 'outside the box' approach as they prefer command and control, learning by rote. Also note that China has 1.3bn citizens to share the pot with, whereas America has only 300m - sorry a bit off topic!

Generali

Personally, I wouldn't open a factory if I knew I could never close it if I ran a large car multinational. Perhaps Nissan feel the same way.

ruggedtoast

Generali wrote: »

Personally, I wouldn't open a factory if I knew I could never close it if I ran a large car multinational. Perhaps Nissan feel the same way.

That is why there aren't many new plants opening in Japan. But those plants which are there will continue to be there long after Sunderland has fallen silent.

abaxas

ILW wrote: »

I the Sunderland Nissan plant unionised?

No,

There is good working relations between the staff and management.

If there wasn't, Nissan would just move.

FTBFun

Several people smugly pointed out how embarrassing it must be for Britain, which used to lead the world in the auto manufacture

Crikey, who says this? If anyone did it was the USA.

Guitar

Nissan Sunderland was my first proper job. The production line amazed me. The money was really good too, over 10 years ago I was earning more than I do now, just 4, 10 hour shifts a week.

The work was soul destroying though, drug use was very common as it was often the only way some people could cope.

On one hand it's great to have such a large employer near by, most working class kids leaving school probably got their start there same as I did. On the other hand Nissan know how important they are to the region and occasionally threaten to pull out unless they get some sort of subsidy from the government or if other demands aren't met. If Nissan leave the region it'll be back to the dark ages.

ruggedtoast

Guitar wrote: »

Nissan Sunderland was my first proper job. The production line amazed me. The money was really good too, over 10 years ago I was earning more than I do now, just 4, 10 hour shifts a week.

The work was soul destroying though, drug use was very common as it was often the only way some people could cope.

On one hand it's great to have such a large employer near by, most working class kids leaving school probably got their start there same as I did. On the other hand Nissan know how important they are to the region and occasionally threaten to pull out unless they get some sort of subsidy from the government or if other demands aren't met. If Nissan leave the region it'll be back to the dark ages.

Yes exactly, the threat of leaving unless they get their subsidies and continued weak labour laws is virtually identical to the bankers threats to leave if they are taxed and regulated.

Both scenarios end up informing government policy and affecting the lives of millions of people, not via a considered consensus but down to a knee jerk fear of regional disadvantage.

Then the only people who are left who can and will strike are the public sector workers; who by comparison seem pampered and no longer have the support of the private sector workers.

Top hat wearing capitalists 1. Working man. 0.

Mr_Mumble

Guitar wrote: »

On the other hand Nissan know how important they are to the region and occasionally threaten to pull out unless they get some sort of subsidy from the government or if other demands aren't met.

Immediately thought of this:

Monday, 7 October, 2002

Nissan warns on Sunderland's future

The future of car production at Nissan's factory in Sunderland could be at risk, the automaker's president and chief executive Carlos Ghosn has warned.

In an interview with BBC News Online, Mr Ghosn made it clear that the plant's future would depend on whether the UK adopted the euro.

"We are worried about having our cost base in pounds and to have our revenue base in euros," he said.

:rotfl:

Generali

ruggedtoast wrote: »

That is why there aren't many new plants opening in Japan. But those plants which are there will continue to be there long after Sunderland has fallen silent.

In which case it's reasonable to think that someone else will have opened another factory making things people want to buy.

For an example of what happens when Governments force companies to keep factories open that produce things that people don't want, look at the economy in the 1970s in the UK.