Nissan to build a new plant.

CLAPTON

kinger101 wrote: »

If the UK doesn't get reasonable tariffs, if think May is planning to cut corporation tax. Not much of an incentive to the many companies which have already moved their profit offshore with dodgy transfer pricing though.

why do you want these companies that pay no taxes in the UK?

wotsthat

kinger101 wrote: »

If the UK doesn't get reasonable tariffs, if think May is planning to cut corporation tax. Not much of an incentive to the many companies which have already moved their profit offshore with dodgy transfer pricing though.

The only good tariff is zero.

Shakethedisease

Graham_Devon wrote: »

You have also made a pretty bad point to be fair, as how else can it be seen?

The continuing manufacture in the Uk all revolved around Brexit. The fact that they are going to continue despite brexit can only be a positive thing if you voted for brexit.

Now, 'I'm under no illusion that the whole "were mulling over our options" thing was another scare tactic.

But it's always been the case that new models are often built elsewhere. Brexit or not.

They've been bunged. They were threatening to leave a few months back and it's not a coincidence that this news came out the same day as the growth figures. Brexit needs some good PR at the moment. The fact that the Govt did it all behind closed doors and won't release the details says it all. Vague soundbites about 'reassurance' isn't even close to what's really going on. No one is that stupid.

Free market advocates ( Tories ) shielding private companies from any possible effects of Brexit with state aid when Brexit was supposed to be good news all round for business. Obviously not.

Is either that or the UK is staying in the single market complete with FOM.

redux

Zero_Gravitas wrote: »

Nissan will not have decided to make these models in the U.K. because the Government told them it would try its best to get a good Brexit deal.

Nissan's decision will be because, at this point in the model development cycle, they have decided that it will cost them less overall to make the cars here and pay tariffs to export them to Europe; than to move the production to another factory, with all the disruption and lost productivity that entails, and make redundancy payments in Sunderland.

And for the next models, if it's going to be cheaper to make them in the EU, then that's where they will be made...

Shakethedisease wrote: »

They've been bunged. They were threatening to leave a few months back and it's not a coincidence that this news came out the same day as the growth figures. Brexit needs some good PR at the moment. The fact that the Govt did it all behind closed doors and won't release the details says it all. Vague soundbites about 'reassurance' isn't even close to what's really going on. No one is that stupid.

Free market advocates ( Tories ) shielding private companies from any possible effects of Brexit with state aid when Brexit was supposed to be good news all round for business. Obviously not.

Is either that or the UK is staying in the single market complete with FOM.

The second quote is much nearer the mark.

Actually, Nissan's decision was based on last minute written promises from Cabinet ministers to protect the company from consequences arising from Brexit.

Rather odd, given how keen Brexit fans are to play down chances there would be problems.

If enough other companies lobby for similar promises, and obtain them, the government might as well stay in the Single Market, to avoid underwriting costs of leaving.

michaels

Kudos to Nissan though, they played their hand to perfection in terms of timing. Sure they would have got a deal anyway even without brexit but no doubt they got a better one because of it.

HAMISH_MCTAVISH

Shakethedisease wrote: »

Is either that or the UK is staying in the single market complete with FOM.

That does increasingly look like the backstop position.

Britain exports over a million cars per year... Compensating the industry against 10% tariffs would be enormously expensive.

vivatifosi

HAMISH_MCTAVISH wrote: »

That does increasingly look like the backstop position.

Britain exports over a million cars per year... Compensating the industry against 10% tariffs would be enormously expensive.

I don't know what the deal says, but if the pound has dropped c18% and tariffs are 10%, is it not likely to cover only circumstances in which the pound rises? Uncertainty aside, it would currently be cheaper to manufacture, so their should be no need, unless say the euro unravels.

Masomnia

vivatifosi wrote: »

I don't know what the deal says, but if the pound has dropped c18% and tariffs are 10%, is it not likely to cover only circumstances in which the pound rises? Uncertainty aside, it would currently be cheaper to manufacture, so their should be no need, unless say the euro unravels.

Indeed. I wonder if they're factoring in too that labour costs have fallen substantially?

Just heard on R4 that they're denying that any financial support has been offered, though.

I think given that we import so many cars from Germany and France it's unlikely that there will be tariffs, but that's speculation.

wotsthat

vivatifosi wrote: »

I don't know what the deal says, but if the pound has dropped c18% and tariffs are 10%, is it not likely to cover only circumstances in which the pound rises? Uncertainty aside, it would currently be cheaper to manufacture, so their should be no need, unless say the euro unravels.

It'll be unpalatable whether there's a currency trigger or not. British taxpayers promising to pay the tax bills of European consumers when the same consumers have just seen the price of British made cars fall by 18% or so.

That's why the deal is secret. The government don't wish to create an anchor to be used by the next person in the queue.

The negotiating strategy of the UK is also a secret but this deal has shown the government's hand to an extent. They want and now need a free trade deal to prevent expensive Brexit insurance payouts.

mrginge

wotsthat wrote: »

It'll be unpalatable whether there's a currency trigger or not. British taxpayers promising to pay the tax bills of European consumers when the same consumers have just seen the price of British made cars fall by 18% or so.

That's why the deal is secret. The government don't wish to create an anchor to be used by the next person in the queue.

The negotiating strategy of the UK is also a secret but this deal has shown the government's hand to an extent. They want and now need a free trade deal to prevent expensive Brexit insurance payouts.

On the other hand, since British built Nissan cars will now be relatively cheaper than other manufacturers under a tariff imposed environment, will VW now be trotting off to the German govt requiring the same level of support?