Post Brexit Britain what Positive things are we doing

The_Last_Username

cells wrote: »

Some investments are too big for one country. For example Tesla an electric car manufacturer is looking to build a factory in the EU and they will be looking to produce a volume of about 500,000 to 1 million cars a year. That's too big a number for any one EU nation. So if the EU didn't exist and Europe was a bunch of countries in the world free trade agreement system all charing each other tarriffs then Tesla would probably just build a second factory in the USA and export to the EU nations but with the system as it is its a much better idea to open the second factory somewhere in the EU

With the UK in the EU it would be a country to consider for Tesla. It can build 500,000 electric cars somewhere in the Midlands and export 400,000 to the EU and sell 100,000 domestically.

With the UK out of the EU and with tariffs in place the UK would be a bad idea as itbwould need to pay tariffs on 80% of its production. Its better to be based in France or Germany and sell 400,000 units a year into the EU with no tariffs and sell 100,000 to the UK with tariffs.


If the UK agrees a free trade deal with america then we won't get a Tesla factor the american one will export to us. If we get a free trade deal with China then the Chinese or american Tesla factory will export to us. If we get a free trade deal with India then the Indian or Chinese or USA factory will export to us. There is no way outside of the EU where we become producers of these cars rather than importers from a bigger player.

That's just one example of one company but there are probably thiauanda each year that most of us will never hear about.


Oh just to note as it happens the rumor is that they are looking into France as the place for their EU plant

Besides the (strong?) possibility that the EU as it is now may well not be in existence for much longer, hence rendering your entire argument moot, you might be wise to choose a new example.
It is looking as if the "success" of Tesla may be premature; they may not need (or indeed afford) a new factory.

http://video.cnbc.com/gallery/?video=3000533716

https://thenytimnews.wordpress.com/2016/07/12/tesla-in-more-trouble-did-elon-musk-lie/

http://www.law.com/sites/almstaff/2016/07/12/family-of-tesla-autopilot-crash-victim-taps-cleveland-lawyer/?slreturn=20160613132051

baza52

Joeskeppi wrote: »

We've swapped Generali and Rugged for a racist, bigoted old man.

This is how forums die. Been fun while it lasted.

Who is going to pick up all your toys that you have thrown out of your pram?

Its time to start acting like a grown up Joe, I'm not that old, probably am bigoted but I'm not a racist.

Your the racist one here as you only started using the term when I pointed out I am White British.

Pot-Kettle

gfplux

The_Last_Username wrote: »

Besides the (strong?) possibility that the EU as it is now may well not be in existence for much longer, hence rendering your entire argument moot, you might be wise to choose a new example.
It is looking as if the "success" of Tesla may be premature; they may not need (or indeed afford) a new factory.

http://video.cnbc.com/gallery/?video=3000533716

https://thenytimnews.wordpress.com/2016/07/12/tesla-in-more-trouble-did-elon-musk-lie/

http://www.law.com/sites/almstaff/2016/07/12/family-of-tesla-autopilot-crash-victim-taps-cleveland-lawyer/?slreturn=20160613132051

We are talking about two levels of uncertaintity one with a certain amount of fact.

1) Tesla invest in UK who are leaving the EU in 2/3 years.

2) Tesla invest in EU (perhaps France) possibility the EU might, could, possibly break up.

Just measure the amount of UNCERTANTY between the above two propositions.
I know what most sensible business people would advise Tesla.
If you don't then you have no concept of how business ballance Risk/Reward.

cells

The_Last_Username wrote: »

Besides the (strong?) possibility that the EU as it is now may well not be in existence for much longer, hence rendering your entire argument moot, you might be wise to choose a new example.
It is looking as if the "success" of Tesla may be premature; they may not need (or indeed afford) a new factory.

its just an example there must be a lot of such decisions

The EU not being around is speculative at best. Even if it does break up I suspect there would be some residual EU-Lite even if that is just France/Germany/Austria/Italy that would be a group of more than 210 million which is as you can imagine a much bigger market that can sustain large investment projects versus say the UK with closer to 65 million

Regarding Tesla its not really this thread we should debate it but its anyone guess what they will be like 10 years from now. My guess is they will rapidly move into fully autonomous driving in the 2020s and that they will kill off Uber with their own version of Uber but a lot cheaper and a lot more profitable. They could also move towards 5 million EVs per year production which would mean about 6-10 large factories around the world one of which is likely to be in the EU. Tesla cars will continue to kill and harm people on auto mode and on human mode but they will kill far fewer people per mile than any other car as its possibly the safest car in the world right now (its higher mass and much better crumple zones means if you are in an accident its the car you would want to be in)

cells

gfplux wrote: »

We are talking about two levels of uncertaintity one with a certain amount of fact.

1) Tesla invest in UK who are leaving the EU in 2/3 years.

2) Tesla invest in EU (perhaps France) possibility the EU might, could, possibly break up.

Just measure the amount of UNCERTANTY between the above two propositions.
I know what most sensible business people would advise Tesla.
If you don't then you have no concept of how business ballance Risk/Reward.

Exactly, an EU factory will be built.
Outside the EU the chances of it being in England is close to zero.

And its not about tesla its the point that some production is too big for one small or medium sized nation and it needs either a large nation like China/India/USA or a block like the EU

Personally I dont think the EU will break up. Even if it does there will remain an EU lite for the same reasons as just discussed. A 'mini EU' might be a return to Belgium, France, Germany, Italy, Luxembourg and the Netherlands which would be nearly 250 million people a good deal higher than the UK of 65 million

StevieJ

Leaving the EU is certainly a blight on inward investment, no more Nissan Sunderland type deals Hopefully they will maintain their already invested presence.

mayonnaise

StevieJ wrote: »

Leaving the EU is certainly a blight on inward investment, no more Nissan Sunderland type deals Hopefully they will maintain their already invested presence.

Inward investment is bad according to our resident economic oracle aka clapton. Dividends and profits are leaving the nation you know. We can only hope Nissan (and Honda, Toyota, BMW, GM and JLR also of course) close down their existing plants to stop this trend asap.

CLAPTON

The concept that the 'owners' of a business benefit from the profits and dividends is a world wide phenomona.
Funding a large and continuing balance of trade deficit by selling off Uk industry and businesses doesn't make long term economic sense.

It is certain that inward investment will continue. Investment which bring new businesses and technolgy will be beneficial.

As far as cars are concerned we are net imports of cars so its likely that it will be in the economic interest of businesses to build car in the UK.

gfplux

It is very positive that we now have a minister for EU withdrawal. David Davis.
This will have reduced uncertainty by a fraction.