Brexit could force Japanese carmakers out of Britain ~ station of gear

Hugo Griffiths 2018-02-09 15:05

Japan’s ambassador warns of “high stakes” situation; Nissan, Honda and Toyota employ thousands of UK workers

The post-Brexit future of Japanese carmakers in the UK has been called into question by Japan’s ambassador following a high-level Downing Street summit.

Speaking outside 10 Downing Street shortly after a meeting of 19 Japanese industry leaders, the country’s ambassador, Koji Tsuruoka, called Brexit a “high stakes” situation, emphasising the importance of the “continuation of healthy, sound trade relations between [the] UK and [the] EU”.

• UK car industry facing 13 per cent rise in costs after Brexit

Tsuruoka warned if favourable post-Brexit trade agreements with the UK and EU were not agreed, Japanese companies were likely to leave the UK.

“The question is whether the arrangements that will be reached between the two sides will allow the Japanese companies to continue to operate in the UK," he said.

Addressing Japan’s status as a “major investor” in the UK and the EU, Tsuruoka said the continuation of this was dependent upon business cases: "If there is no profitability of continuing operations in the UK - not Japanese only - no private company can continue operations. So, it is as simple as that."

Japanese carmakers employ thousands of workers in the UK. Nissan’s Sunderland plant currently has around 7,000 staff, while Honda has roughly 3,000 at Swindon. A similar number of Toyota staff build hundreds of thousands of cars and engines at Burnaston in Derbyshire, and Deeside in North Wales. With roughly 80 per cent of cars built in the UK exported, however, favourable trade links are vital for these operations.

What effect do you think Brexit will have on the car industry? The SMMT has urged the Government to pursue a ‘frictionless’ departure from the EU…

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