Breaking: Brits choose Brexit, British car industry screwed?

Posted on 24-06-2016 at 8:11 by jaapiyo – 151 Comments”

You would think based on previous posts.

And then there were 27. Brexit, it was a kind of funny word and something to indicate what would never happen. A PR exercise by prime minister David Cameron that a “game of chicken” played with the kiesvolk. You really want away from the EU? Okay give me a second term and I make sure that you can choose if you really want to. Even on the evening of the referendum, it seemed as if the pro-EU camp is in the majority. In the meantime, however, the morning after the night before here we are at the beginning of a hot ‘English summer’. Often, this kind of things with a damp squib, for example, because of a European constitution, a European people is rejected, but a different way back then, still are the de facto ‘constitution’. This time, it seems unlikely that the emerging wrinkles as easily smoothed out.

The issue has parallels with the TTIP debate. In theory, it is the creation of far-reaching political and economic uniformity is an increasing matter. Cut (over -) regulation, various industry standards, all sorts of import duties, etc., road and companies can flourish. They do not, for example, to take into account different safety requirements for cars in different markets. The reason that, for example, Pagani, the Zonda is not officially in America sold and American Spykers not that very nice steering wheel, but a lot of other VAG wheel with airbag. Also can cheaper labour from other countries the labor press. Think on the other hand, trains of the past which borders had been equipped with a totally different frame because the rails in different countries of different widths. Eliminate this kind of things, and you increase the fair competition between companies and makes the cake bigger. Atlas shrugged, would Ayn Rand say.

Opponents, however, say that this cake, however, only benefit the top of society, while Jan Modal and the bottom of society do not benefit or even the victims of less regulation. The fat cats ordering an extra piece of bleu chaud-baked wagyu beef, while Jan-Modal have to do with an unregulated chloorkippie. They set awwwww jobzzz, they would say in South Park.

In the United Kingdom, it appears that this second group is now slightly in the majority, at least in England and Wales. The Bulkheads are unintentionally present on the blisters and the Northern Irish want to join Ireland.

But what is this to do with the car industry in Britain? Earlier we reported about Toyota and Jaguar Land Rover, which costs a lot of money provided as a result of the Brexit. They are not the only ones. The Society of Motor Manufacturers and Traders (SMMT) gave for the referendum to that as much as 75% of their members against the Brexit. Manufacturers such as Ford, Audi, BMW, Mercedes, Hyundai, PSA, Honda, Toyota, Kia and Nissan have spoken out against the Brexit. The British AA, approximately the equivalent of our ANWB, warned that the EU steps could lead to an increase in the price of petrol by 19 pence per litre. Later this number, however, drastically revised to two to four pence per litre. Now we’re talking about the British currency: the value of the British Pound is meanwhile had plummeted to less than 1 dollar 34. Yesterday the Pound have a value of $ 1 50. The position of the ‘Bremain’camp was clearly.

“Leaving the EU, and the single market of 500 million people, would be disastrous for the British car industry, risking jobs, threatening exports and hitting consumers. The significance of our membership is undeniable: UK to EU car exports were worth £11.8 bn in 2014 and 40 per cent of cars made here were exported to the EU, while about 730,000 UK jobs depend on the motoring industry.”

Also the German car industry, in the UK, of course, under other represented thanks to MINI, Rolls-Royce and Bentley, did a few words in with the words of Matthias Wissmann, president of the German Verband der Automobilindustrie:

“We all hope the vote is in favor or remain. The German car industry alone has 100 production sites in Britain, including suppliers. If there were a trade conflict between Britain and the European Union, the damage would be enormous for everybody. It would be a serious setback for the industry and would surely result in some production sites relocating.”

Brexit advocates, former mayor of London and sports enthusiast Boris Johnson is, however, a fan of the Brexit, and claims that this also advantages for car manufacturers.

“Leading car manufacturers such as Honda, Toyota and Nissan have made it clear they will continue to invest in the UK after we Vote Leave. They are attracted by our highly skilled workforce, strong legal system and business-friendly environment – all qualities we will continue to have outside the EU. But what would be different is that leaving the EU means we could take back control of our trade policy – to ensure that car manufacturers can trade freely with the growing economies of the world. And let’s not forget, the EU is no fan or motorists – the unelected EU judges decided to impose increased insurance premiums for female drivers. When we take back control on Thursday 23 June, we can reverse this ruling and lower costs for motorists.”

That the EU is not exactly the friend of the motorist is perhaps a point for Boris. Or the United Kingdom there are uppie what you can do is a second, because cars that are made in the UK will still need to meet all the standards in the EU apply, as otherwise they are here cannot be sold.

How this issue in the future is going to extract will depend largely on the arrangements that the EU and the UK now worry about their separation. It is a vechtscheiding, or simply by the relationship in two different houses? Example, a construction as in Norway which is not a member of the EU but of EFTA, the EEA and the schengen area and therefore also for about 800 million Euros per year contribution to the EU greenhouse? The car industry will undoubtedly pay close attention to how this political game unfolds.