Brexit the economy and house prices part 7: Brexit Harder

Kohoutek

kabayiri wrote: »

Post-Brexit we will have to take the matter seriously!

You mean like subsidies and tax breaks to cushion having worse trading relations / more bureaucracy with trade with our biggest market (EU/EEA) and markets with EU trade agreements (Japan, South Korea, Turkey, Mexico)?

I think those people who thought Brexit would lead to more money, not less money, for public services might not be very happy about that.

Thrugelmir

StevieJ wrote: »

Not sure Japan is the cheapest, especially with their aging workforce.

Centralised production has to be cheaper and more efficent. This is JIT Mk2. Doesn't require that many people in relation to the output.

phillw

kabayiri wrote: »

What was the excuse for the last 40 years?...when various facilities left these shores despite us being in the oh-so-protective EU?

They would have left anyway & probably even more would have left, we also wouldn't have had the companies that came.

It's pretty clear, you knew all this before the referendum. Nobody cared about the economic consequences of leaving.

Herzlos

Thrugelmir wrote: »

Personally Honda cars have never appealed to me. Model range has become somewhat staid and outdated.

That'll be a great consolation for the 3500+ people who are going to lose their jobs. Whether or not you like Honda (and they make good cars), it's terrible news

phillw

Thrugelmir wrote: »

Personally Honda cars have never appealed to me. Model range has become somewhat staid and outdated.

That is where they were going wrong, instead of building cars that they could sell worldwide they should have just been worrying about what you wanted.

Would it look like https://simpsons.fandom.com/wiki/The_Homer

Thrugelmir

phillw wrote: »

That is where they were going wrong, instead of building cars that they could sell worldwide they should have just been worrying about what you wanted.

By the sounds of it you've never bought a Honda either........;)

I do like Japanese cars. My previous car was a Toyota and currently a Mazda. Both are imports from Japan. Though the Mazda does have a Ford gearbox.

SouthLondonUser

According to the Financial Times, the recent EU-Japan trade deal cuts tariffs to zero by 2027, so not immediately.
It's hard to think that Brexit has nothing to do with it, since Honda would, according to the information on the FT, be paying some tariffs with this decision.


Key questions (and they are real questions, I genuinely don't know but am curious):


I imagine the trade deal doesn't distinguish between EU countries, i.e. tariffs will be removed to zero for all. Why were France and the other countries (let's remember Toyota has plants in France, Portugal and the Czech Republic) fine with it, why did they not fear Toyota would move production back to Japan?



This trade deal was negotiated while the UK was still technically a member. Did the UK decide to have no say in the deal, was the UK not part of the process at all, could the UK have had a say but chose not to, or what?

Thrugelmir

SouthLondonUser wrote: »

It's hard to think that Brexit has nothing to do with it, since Honda would, according to the information on the FT, be paying some tariffs with this decision.

Then why close the plant in Turkey. Only last October production was going to ramped up.

Meanwhile Honda have bought a 5% stake in GM. Appears as if manufacturers are already looking ahead to the next generation of vehicles. With lower emissions on the agenda.

Meanwhile in China new car sales are down dramatically month on month. Now 7 months of continual falls.

Sales dropped a steeper 15.8 percent from a year earlier to 2.37 million vehicles last month, the Association of Automobile Manufacturers (CAAM) said in an emailed statement to Reuters. That followed a 13 percent drop in December and a 14 percent fall in November.

“Car sales in January continued to decline, and there was no sign of improvement. We estimate that February wholesales will also drop sharply” said Xu Haidong, CAAM assistant secretary general.

“The reason for the sales drop is still the slowing overall economy, and consumption decline in small- and medium-sized cities” Xu said.

https://uk.reuters.com/article/uk-china-auto/chinas-car-sales-tumble-road-ahead-bumpy-idUKKCN1Q70FZ

buglawton

mayonnaise wrote: »

Honda to close its Swindon plant. Permanently.
3500 jobs on the line.

Well done Brexiteers. :T

Honda to leave EU. As announced on social media.
Just as the EU concludes a Zero tariff deal (phased in over 8 years) with the Japan. Meaning the UK as a tariff free gateway into the EU had lost its meaning anyway.
Coincidence? Expedience?
Next up, Toyota?

phillw

buglawton wrote: »

Meaning the UK as a tariff free gateway into the EU had lost its meaning anyway.

Right, but there is a financial benefit in momentum & the UK is closer to ship cars into the EU than Japan. So had brexit not happened and interrupted that momentum, then I think there is a good chance they would have stayed here.

I kinda feel sorry for the business owner leaver voters, some of them actually have some reasons to vote leave because of workers rights etc. Some of them would on paper even make more money, but as everyone else is going to lose then government will have to tax them more anyway.