Interesting that the FT and other media are reporting that if we end up with car tariffs between the U.K. and the European Community, then Nissan might shift more production to the U.K. Under this scenario they would look to increase their U.K. market share from the current low 6% to 20%. As the Leaf is already made in Sunderland could this mean more EVs being built in the UK?
Could Nissan expand production at Sunderland?
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Is Nissan’s screeching U-turn on staying in the UK post-Brexit a sign that others will follow suit?
Nissan said leaving the EU would threaten its factory in the Sunderland.
Nissan 'could pull out of EU and expand in UK after hard Brexit'
Carmaker considers focusing on UK market if there are tariffs on exports, according to report
www.theguardian.com
Brexit boost: Nissan to leave Europe to support UK factory in Sunderland source claims
NISSAN will pull out of Europe and increase production across its UK market post-Brexit if a free trade deal is not agreed between Britain and the EU in a major win for Brexiteers.
www.express.co.uk
It was front page today.
Of Google?
This quote is just part of the article - the earlier part sets out the proposition I referred to at the start. Nissan no doubt are looking at a number of scenarios but I found this one interesting. It suggest that Peugeot might be looking at a scenario involving expansion of Vauxhall in the U.K. also.
So they have a story which is denied by the official spokesman for Nissan.
Now tell me why Nissan would think investing in the UK is a good idea.
The article suggests because they will have a big competitive advantage over EC based manufacturers, they can grow market share from 6% to 20%.
Nissan has invested heavily in the U.K. and so they can protect that investment by expanding U.K. production aimed at the U.K. market. It is one of the most efficient car factories in Europe.
Nissan has invested heavily in the U.K. and so they can protect that investment by expanding U.K. production aimed at the U.K. market. It is one of the most efficient car factories in Europe.
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A number of possible reasons:
- They've invested £4bn in Sunderland and is their most efficient factory globally
- They're failing in Europe but have a chance to grab a big slice of the UK Market especially if tarrifs reduce European competition
- Their UK factory already has EV manufacturing capability and they would be mad to invest in France given the situation there!
- Govt subsidies
Interesting to think if Honda had built a cheaper EV (sub £20k) in the U.K. they could have stolen a march on others
The EC trade deal with Japan instead made it cheaper to make cars in Japan and export them.
It will be interesting also to see what Toyota decides to do.
The scenario the FT article refers to in a car tariff world where a manufacturer decides to expand rather than leave was not one I had though about before. It may not come to pass but I thought worthy of attention.
There has been speculation about subsidising battery production in the UK to support car manufacturers (not in this FT article but previously in various media).
I guess if the UK Government is serious about developing the U.K. economy in a post Brexit world then it will need to do a lot more to support the car industry.
The EC trade deal with Japan instead made it cheaper to make cars in Japan and export them.
It will be interesting also to see what Toyota decides to do.
The scenario the FT article refers to in a car tariff world where a manufacturer decides to expand rather than leave was not one I had though about before. It may not come to pass but I thought worthy of attention.
There has been speculation about subsidising battery production in the UK to support car manufacturers (not in this FT article but previously in various media).
I guess if the UK Government is serious about developing the U.K. economy in a post Brexit world then it will need to do a lot more to support the car industry.
Yes good point!
I suspect this is what is really behind the story. Nissan probably want matched funding to put more money into Sunderland or they pull it completely.
Perhaps. JLR has also been pressing for support for a battery plant. The Germans are also reported as looking at subsidising battery production in their country. It usually has to be a shared facility if it is to avoid current EU rules. I am not sure if Tesla is getting support for its facility near Berlin. The FT article, which of course is speculative, is considering a scenario where the U.K. and EU are unable to agree a comprehensive free trade deal. One of the potential stumbling blocks is the argument about EU rules and how those rules are policed. In the absence of agreement then tariffs will be imposed and it will mean cheaper U.K. produced cars for the U.K. compared to EU produced cars. In avoiding being a rule taker the U.K. may also be able to support key sectors by subsidising key infrastructure/ research funding. I am trying to avoid making a judgement at this stage about the rights and wrongs of this approach.
The U.K. in avoiding becoming a rule taker could also set its own standards. An interesting scenario would be one whereby the U.K. sets higher standards or is more ambitious than the EU in for example reducing emissions. That could push U.K.car plants to produce more EVs in a faster timescale. There could be greater subsidies for not just to manufacturers but also to consumers. The EU based manufacturers would end up selling less cars to the U.K. but of course U.K. based manufacturers would sell less to Europe. Toyota and JLR would suffer.
If you look at their track record, JLR are masters at getting regional development and R&D funding from the government.
Articles like this (especially in the FT) don’t just happen because of journalism. There will most likely be a ‘leak’ from Nissan which they can use as leverage against ministers and local MP.
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