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Nissan warning on no-deal Brexit a stark reminder jobs still are not safe

Posted by Warwick Business School at 03 June 2020, 16:46 CET |
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Expert comment from Christian Stadler, Professor of Strategic Management and automotive industry expert at Warwick Business School:

"Last week's news that Nissan planned to keep its Sunderland plant open, while shutting its factory in Barcelona, came as a relief for British workers.

"However, this new warning that the plant is under threat in the event of a no deal Brexit is a stark reminder that jobs are still not safe, both at Nissan and other British car factories.

"The prospect of tariffs on cars exported to Europe will be particularly concerning for Nissan. If the UK imposes a 10 per cent tariff on imported cars, it is reasonable to assume the EU will respond in kind. That is likely to have a much bigger impact on sales of a Nissan Micra, for example, than a mid-range German car such as a Mercedes, BMW, or Audi.

"Nissan's market share has already fallen in Europe and the company is more focussed on the US and Asia, which poses a threat to jobs in the medium to long term. It is already looking for efficiency savings. If trade tariffs cut profit margins, it is not hard to imagine that Nissan will close its Sunderland plant and relocate production elsewhere."

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