Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
British car industry at the cliff? It just dawned on me (yes I'm slow) that cross channel trade will be greatly diminished and that cross channel just-in-time sourcing is basically over. A net negative for everyone but especially for the UK and you can't really blame EU governments for advising businesses on how to exploit the opportunities as more business moves to the continent. Ah shit.

But maybe something good will come out of it for the UK. Everybody needs a cold shower now and then.

As the great Rik Mayall said: "Good grief we are British, you know. We invented cold showers. To stop people..."

Schengen is toast!

by epochepoque on Wed Jun 6th, 2018 at 09:47:09 PM EST
The basic problem is that technology has evolved it has become more and more complex. So economies of scale are required to keep costs down. So parts of any car are made in factories all over Europe and abroad and then assembled in one location. This isn't a problem so long as they are basically being manufactured within one very large market and customs union.

After Brexit, if the UK leaves the Single Market and Customs Union,  there will have to be customs checks to ensure components are within specifications for quality/safety and comply with rules of origin. Tariffs may also apply. Either way costs are increased and Just-in-time become problematic.

The UK market and manufacturing base, on it's own, simply isn't big enough any more to sustain a major manufacturing industry like cars. So only small, simple, hand built, or specialised vehicles may be sustainable.

Same goes for aero-space where Airbus wings are manufactured in the UK. Which is more likely: that Airbus manufacturing is concentrated/consolidated in the UK or the EU?

The worst thing, from the UK perspective, is that it is all the advanced, high value stuff that will be effected most.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Jun 6th, 2018 at 10:55:47 PM EST
[ Parent ]
yea, but we're taking back control, so I'm sure it will all be worth it. Or at least it will the very minute we identify what it is we'll be controlling

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Thu Jun 7th, 2018 at 07:34:03 AM EST
[ Parent ]
by Luis de Sousa (luis[dot]de[dot]sousa[at]protonmail[dot]ch) on Thu Jun 7th, 2018 at 07:31:40 AM EST
[ Parent ]
the only problems he's concerned with is for his money transfers from his local bank to the offshore tax haven of his accountants recommendation.

Anything else is just trade and that's for little people with whom he has no contact and for whom he has no concern. He's far too busy telling everybody that they shouldn't invest in Russia cos Putin ...novichok.. something something gazpacho while his own investment company is shovelling money at Moscow as fast as his little arms can paddle.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Thu Jun 7th, 2018 at 07:41:34 AM EST
[ Parent ]


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