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A Brexit fable...
 

[Closed] A Brexit fable...

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Wow! So many global car industry experts in one thread,

I only mentioned Nissan because following on from next year Nissan UK have a limited market. Selling to Europe if they have to add tariffs to the selling price will put a Nissan at the same price as a comparative native selling car in Europe. Basically they are manufacturing in Europe because of the access to a large available market.

Going back to the reason for using Nissan as a comparison to Audi et el. People look to these brands as a mark for high quality and that makes them an aspirational must have. You only have to walk down many streets in the UK to see that for yourself.

Anything that is manufactured in the Uk and selling in Europe is always going to be tight in margin, add 10% to that, there goes your margin.


 
Posted : 06/12/2020 7:40 pm
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TJ, if your wager/forfeit post was directed at me I'm definitely interested but not based on a two year time frame.
It can take a long time to wind down a manufacturing operation so if you're willing to agree proposed wording of...Nissan will announce the closure of the plant within 12 months of the end of the trade negotiations or December 31st, whichever is later...we have a bet.
If they make that announcement I lose; if not, you lose.
I suggest £50 to a charity of choice - a food bank in Washington might appreciate your money.
My charity of choice is Crisis.


 
Posted : 06/12/2020 8:02 pm
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So in 2 years time, providing an FTA has been agreed:
>if the plant is still open and building Jukes and Qashqais and there are no plans to move the production of these models (in their current generation) elsewhere I win.

> If new models are announced, I win.

>If current generation Juke and Qashqai have their production moved before the end of their life I lose.

I'll take that bet.

Regarding the potential JIT issues. I would expect any severe logistics disruptions to be temporary, if they aren't we'll have much bigger problems to worry about as a country than a car factory with disrupted production 🙂 Beyond that potential initial disruption I'd expect any extra logistics time would be factored into their delivery schedules and adjustments made accordingly. A significant percentage of parts come from Asia anyway - you could hardly call these JIT when they take a couple of months to arrive, so if parts from Europe take an extra couple of days this is hardly a deal breaker.


 
Posted : 06/12/2020 8:06 pm
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Wait til you see what will happen with services, whose companies can relocate far easier..


 
Posted : 06/12/2020 8:10 pm
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More complicated with services. Irrespective of Brexit, City banks were sending more backroom stuff to Bournemouth, Warsaw, Mumbai etc. Wherever a regulator says their base should be, they will try to locate the people where it is economical and do the deals wherever the movers and shakers like to hang out. (Which isn't Frankfurt.)

LOL my auto type kindly provided "Frankfurter" there.


 
Posted : 06/12/2020 8:47 pm
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mdavids - bet is only available to TJ.


 
Posted : 06/12/2020 9:07 pm
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I don't bet for money even to charity ever.

I would expect any severe logistics disruptions to be temporary,

I am sure they will be permanent until we get a change of government and start to go back to the EU


 
Posted : 06/12/2020 9:15 pm
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@frankconway, I was talking to TJ, but seems like he's not up for it anyway.

@TJ, so have you stockpiled tinned food in preparation? The level of disruption you're suggesting is surely going to affect food supplies?


 
Posted : 06/12/2020 9:28 pm
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Yes I have a small stockpile and am going to build it a bit more. Food is going to be disrupted no doubt at all. Stuff that requires refrigerated lorries etc

I'll do a bet for something funny. I never bet for money.


 
Posted : 06/12/2020 10:05 pm
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Yes I have a small stockpile and am going to build it a bit more. Food is going to be disrupted no doubt at all. Stuff that requires refrigerated lorries etc

Interesting, I'll be honest I think this is a rather extreme and pessimistic view point, it comes across a little bit "sky falling in" if you know what I mean. I guess it explains why you think Nissan is doomed. Here's hoping things aren't that bad for all our sakes. Although part of me wants it to be bad enough to ensure the Tories get the boot next time around.


 
Posted : 06/12/2020 10:23 pm
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The big supermarkets are all saying that imported fresh veg and fruit is going to be in short supply.


 
Posted : 06/12/2020 10:30 pm
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I’ll do a bet for something funny. I never bet for money.

C'mon take the bet: I want to see a photo of TJ with his flowing locks walking through the centre of Edinburgh with a "Vote Tory" placard 😀


 
Posted : 06/12/2020 10:31 pm
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If it gets that bad I'll happily join in the riots.


 
Posted : 06/12/2020 10:50 pm
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mogrim - that would be cruel and unusual punishment 🙂


 
Posted : 06/12/2020 10:56 pm
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I am incredibly ashamed to admit that for months I have been buying a few extra non perishables each supermarket shop.

It may have been irrational but I could not face queuing because of this cluster #@_£.

If I am wrong I will have a supply of stuff I can use over the course of the year.


 
Posted : 06/12/2020 11:04 pm
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for months I have been buying a few extra non perishables each supermarket shop.

I have panic bought Gates belts and sprockets, bearings (and tools) for my Nicolai and ESI gripshift grips to last me for years, all from Germany.  Didn’t think about food. Damn


 
Posted : 06/12/2020 11:16 pm
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I guess it explains why you think Nissan is doomed.

Listen to Nissan, you don’t need to listen to what TJ “thinks”, he’s just able to listen and read and let you know what’s been, openly, stated by spokespeople for the company.

Yes there’s potential for disruption, do you honestly think this presents an unsolveable issue and the company won’t adapt? Its logistics, not quantum physics.

It’s money.


 
Posted : 06/12/2020 11:56 pm
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I suspect there will be disruption to items we haven't even given a thought to yet, so many things that are taken for granted simply might not be there. Either when we want them or need them or currently become unaffordable.

It an absolute gordian knot that will have so many unintended consequences the mind boggles.

In the short term I'm concerned about disruption to my mother's meds. Specifically the glaucoma drops (3 different ones) to keep her eye sight in one eye. She is effectively blind in the other. That's a big concern.

After the short term mess I've told son that it's best to imagine Brexit as an asteroid hurtling towards earth but not knowing just how bad the impact will be.... but it's such a massive, inevitable event that it's no longer worth losing and sleep over. The time to prevent the impact has gone.

It's shit, it's going to have an almost totally negative impact but it's simply going to happen.

Life will go on but many people's horizons and opportunities will be smaller than they could have been.

The young will be picking up the bill, just as they always do.


 
Posted : 07/12/2020 1:24 am
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P.S. How on earth is this parallel thread still going?😁


 
Posted : 07/12/2020 1:41 am
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Listen to Nissan, you don’t need to listen to what TJ “thinks”, he’s just able to listen and read and let you know what’s been, openly, stated by spokespeople for the company.

I've been listening to them for over 20 years thanks, I'm well aware what the company stance is. I've stated the terms of my bet on a previous post, TJ doesn't want to play, how about you?


 
Posted : 07/12/2020 9:14 am
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They won’t announce the plant’s closure within 12 months, so no one will take your bet.

Edit: oh, that was Frank.

I haven’t said Nissan will not close the plant.

Well, this is all pointless then.


 
Posted : 07/12/2020 9:15 am
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for months I have been buying a few extra non perishables each supermarket shop..

I work for a supermarket, in a group company.

Based on what I'm hearing & seeing - I did a big shop on Friday including +1 months additional dry/tinned goods for the 'store'.

If everything is fine, then it won't go to waste.


 
Posted : 07/12/2020 9:25 am
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Yes, at this point, I can’t understand anyone that isn’t getting a few extra items each week.

I suspect there will be disruption to items we haven’t even given a thought to yet

THIS. It’ll be something completely seemingly innocuous that’s been overlooked, some additive or widget, or some database that’ll stop syncing, that’ll bring the country to its knees


 
Posted : 07/12/2020 9:43 am
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Whatever happens with regards to a FTA, any supply chain disruption and extra checks will be managed,

The delays at the hard border have the potential to queue every LGV authorised for cross border travel on our side. JIT doesn't work if all the transport is held waiting for clearance. Similarly air transport will be delayed by a lack of customs officials and a software system that is predicted to be ready by April!

Sunderland may not get beyond February before the plant closes

https://www.theregister.com/2020/11/04/brexit_it_systems_not_ready/

https://inews.co.uk/news/shortage-customs-experts-severe-delays-border-europe-uk-756837


 
Posted : 07/12/2020 9:47 am
 DrJ
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Sunderland may not get beyond February before the plant closes

You have to hand it to Vote Leave - convincing the people of Sunderland that Brexit was a good idea was an absolute piece of genius. Or else Mackems are a bit thick.


 
Posted : 07/12/2020 11:10 am
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DrJ - Nissan's employees are from across the north east, not just Sunderland; having said that, I wouldn't argue with your assessment of Mackems.


 
Posted : 07/12/2020 11:18 am
 dazh
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You have to hand it to Vote Leave – convincing the people of Sunderland that Brexit was a good idea was an absolute piece of genius. Or else Mackems are a bit thick.

Or rather the vast majority of mackems don't see the benefit of having a manufacturer like Nissan local to them because the vast majority of them don't work there or within the supply chain. They get told how lucky they are and then that they're idiots for voting to leave because of Nissan, and their simple reply is 'but I don't work at Nissan'.


 
Posted : 07/12/2020 11:25 am
 DrJ
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their simple reply is ‘but I don’t work at Nissan’.

That reply really is simple. My BiL is a mackem so my comment was somewhat tongue-in-cheek, but to say that since you personally won't lose your Nissan job, the loss of Nissan to tens of thousands of people in the NE won't affect you is a bit .. simple.


 
Posted : 07/12/2020 11:39 am
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A couple of 'foreign' owned manufacturing companies that I work with have been stockpiling materials for a number of months now.

These materials are always brought in from sister plants in Europe for further processing here in the UK into the final product for the customer.

The stores areas are full, temporary outside stores have been built in the yard area.

You can't move for materials.


 
Posted : 07/12/2020 12:00 pm
 dazh
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That reply really is simple.

You expect (sub)minimum wage gig-workers in sunderland to be happy that others at Nissan have much better paid and more secure jobs than they do?


 
Posted : 07/12/2020 12:15 pm
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You expect (sub)minimum wage gig-workers in sunderland to be happy that others at Nissan have much better paid and more secure jobs than they do?

Not happy, but they won't like it when they see motivated and highly employable people cut into their hours and earnings. Maybe just as a stop-gap, maybe for longer.


 
Posted : 07/12/2020 12:42 pm
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You expect (sub)minimum wage gig-workers in sunderland to be happy that others at Nissan have much better paid and more secure jobs than they do?

I expect them to see what happened in the mining areas after the main employer shut and all that cashflow disappeared out of the local economy.

Gig workers being mostly in services are probably going to be the first to feel the chill wind of recession as people cook at home and can no longer afford to order things from the on-line tat bazaars.


 
Posted : 08/12/2020 9:43 am
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