CombatClaret wrote:and for those of you wondering why Nissan is moving production from Sunderland to Japan.
Independent Headline: EU and Japan sign historic free trade deal after rush to agree terms before Brexit
So yes, China & Diesel are big issues to both companies, doesn't change the fact we've just made ourselves a far less attractive country to do automotive business in.
Hi Combat, for factual accuracy:
1) Nissan aren't moving the production of the X-Trail, they are only choosing not to start producing it in Sunderland;
2) The X-Trail manufactured in Japan has petrol engine, only;
3) The EU Japan trade agreement, according to reports I've read, state that reduction in tariffs will take place over many years (see EDIT, below), it's far from an immediate change;
4) fall in demand for diesel engine road vehicles is across all Europe - thus we could also conclude that all of Europe is now a much less attractive region to manufacture dervs.
5) Uncertainty is a big issue for business, but the uncertainty of the future trading relationship, tariffs or no tariff, is a small thing compared to the big question: will there be sufficient demand to buy the vehicles that may be produced at the price(s) that are required to make the investment in manufacturing worthwhile?
Out of interest, why would EU and Japan be in a "rush to agree terms before Brexit?" according to Independent headline? Both EU and Japan will still be there after brexit.
EDIT: Details (and there are an enormous amount of details) can be read here:
http://trade.ec.europa.eu/doclib/docs/2 ... t/tradedoc.." onclick="window.open(this.href);return false;.
Motor vehicles (passenger cars) had tariff of 10%, from 1-Feb-2019 this tariff will be reduced in equal instalments over 8 years, so that by Feb-2027 the tariff will be zero. (Other goods/food items have different starting tariffs and reductions, according to the trade agreement schedules (annex 2-A-2) will take place over periods extending to 16 years.
As I'm sure a Government minister might have said: "I'm only now coming to understand how much detail is required in a trade agreement...." (Or, "who knew....").
BTW - don't read this last bit as me saying that I'm personally surprised. I've got some prior experience with EU Directives and similar Regulatory documents.