Brexit the economy and house prices part 6

Filo25

Rinoa wrote: »

UK manufacturers will simply use UK parts suppliers.

If your competitors prices rise 10%, and they account for 2/3rds of the market, that's a massive sales opportunity.

A serious question, as unlike some on here I won't claim omnipotent knowledge on all matters but are there actually UK parts suppliers for some of the parts, if there are why aren't they being used already?

Ultimately its hard for me to see how putting some additional barriers in the system doesn't create a more inefficient and costly process.

Equally if we become a car production market which stops exporting entirely and just exists to service UK demand, I have to believe there is also a loss of economies of scale, especially for lower demand models of car, and it would still require large amounts of investment to retool for the significantly changed demand patterns.

StevieJ

Rinoa wrote: »

Imagine you're a Japanese car manufacturer with factories in the UK. Factories that thrive due to UK business friendly attitude and good workforce.

You sell around 700,000 thousand every year to the EU and soon these will be subject to 10% tariffs and other difficulties.

However you're also aware that the UK imports 2.3 million cars from the EU each year, and soon these too will be subject to a 10% tariff with other difficulties.

So, is this situation a plus or a minus?

Knowing the Japanese I'd argue they will see huge opportunities in this scenario.

I like that one 'other difficulties' I suggest that 'other difficulties' will be far more of a problem than a 10% tariff. Like where are those parts for the production line? Sorry they are stuck in a car park in Calais.

mayonnaise

StevieJ wrote: »

I like that one 'other difficulties' I suggest that 'other difficulties' will be far more of a problem than a 10% tariff. Like where are those parts for the production line? Sorry they are stuck in a car park in Calais.

It's very simple. They just use UK parts. It's all very simple.

Arklight

Rinoa wrote: »

UK manufacturers will simply use UK parts suppliers.

If your competitors prices rise 10%, and they account for 2/3rds of the market, that's a massive sales opportunity.

This statement is absurd.

A "British" car produced in Sunderland uses parts from a supply chain all over the EU and the world.

It's not 1955 (I know that's a painful fact for Brexit supporters) where everyone is going to begin making their own parts for their Austin Healey's in lathes in the tool shed.

LHW99

A "British" car produced in Sunderland uses parts from a supply chain all over the EU and the world.

and there is quite a bit of "the world" to source from that isn't in the EU. Not sure about car parts particularly, but in my area, many customers are already sourcing from the US, India and China, none of which are in the EU and all of which are likely to be happy to increase the amount sold to the UK

Rinoa

Filo25 wrote: »

A serious question, as unlike some on here I won't claim omnipotent knowledge on all matters but are there actually UK parts suppliers for some of the parts, if there are why aren't they being used already?

Ultimately its hard for me to see how putting some additional barriers in the system doesn't create a more inefficient and costly process.

Equally if we become a car production market which stops exporting entirely and just exists to service UK demand, I have to believe there is also a loss of economies of scale, especially for lower demand models of car, and it would still require large amounts of investment to retool for the significantly changed demand patterns.

There won't be a fall in economies of sale. After we take advantage
of the 10% increase in EU car prices we'll make more cars, not less.

Rinoa

Arklight wrote: »

This statement is absurd.

A "British" car produced in Sunderland uses parts from a supply chain all over the EU and the world.

:rotfl: You said it.

Parts come from all over the world, without any problem whatsoever.

Rinoa

StevieJ wrote: »

I like that one 'other difficulties' I suggest that 'other difficulties' will be far more of a problem than a 10% tariff. Like where are those parts for the production line? Sorry they are stuck in a car park in Calais.

We make parts for cars made in the EU.

EU parts suppliers make parts for cars made in the UK.

After Brexit more parts will be made in the UK.

Arklight

Rinoa wrote: »

:rotfl: You said it.

Parts come from all over the world, without any problem whatsoever.

Yes and many of them go into distribution centres or factories in the EU before being sent to the UK because the EU is a massively bigger market.

But that’s fine. Nissan and every other manufacturer are going to duplicate their supply chains in a Little England microscom because that’s what Rinoa and the Wednesday UKIP meeting wants.

wunferall

mayonnaise wrote: »

It's very simple. They just use UK parts. It's all very simple.

I almost hate to tell you this, but ............... you know that auto parts are made all over the world, don't you?
And that many more countries make car parts than just EU countries?
And that if the EU do indeed play silly beggars we will be free to buy these parts from wherever we want - and even free to slap retaliatory tariffs?


It's already been said.
But as usual the remain faction here choose to ignore that, preferring to continue preaching doom & gloom.
"Little England" says Arklight, all the time preaching "little EU" as if parts aren't able to be sourced or kept anywhere else even after acknowledging that it is already a global supply chain.
:rotfl: