According to Xinhua News Agency, Nissan Motor Co. said it will sue the British "Brexit" camp because the camp used the logo of Nissan on the "Brexit" flyer without permission. And automakers, including Nissan, support the UK to stay in the EU.

Of the 20 largest automakers in the world, 18 have already produced and invested in the UK, and about 80% of the UK's cars are exported, and nearly 60% of them are exported to EU countries. Manufacturers will face a high tariff of 10%, and the UK's auto industry will also suffer.

Loss of profits or up to 8 billion euros

The most critical reason why automakers support the UK's stay in the EU is not knowing what trade agreements can be reached between the UK and the EU once it leaves the EU, and whether this will affect tariffs. Car companies including Toyota, Rolls-Royce, Bentley, Jaguar Land Rover and Ford have publicly voiced before, saying that they do not want Britain to withdraw from the EU.

Nissan CEO Carlos Ghosn said: "From a business perspective, we certainly prefer the UK to stay in the EU, which is the most reasonable choice for promoting employment, increasing trade and corporate cost reduction. In terms of stability, stability is much better than the unknown. Nissan has a large factory in the northeast of England to manufacture Nissan and Infiniti brand cars.

In an open letter to employees, Toyota’s general manager, Shimamoto, even warned that leaving the EU would increase the car’s tariff by 10%, which would force the company to cut costs or increase sales, affecting sales. Toyota has two production lines in the UK and employs more than 3,400 people. Toyota produces 90% of its cars in the UK for export, and about 75% of them are exported to EU customers.

Multinational automakers built in the UK are reluctant to leave the UK, and the British Automobile Manufacturers and Traders Association (SMMT) CEO Mike Hoss also publicly stated: “EU market access, free movement of goods and labor, trade in Europe Policy and industry regulations, these are fundamentally critical to the UK auto industry. In short, changes in trade regulations caused by the departure of the EU will also have a negative impact on the UK auto industry.

The UK is Europe's second-largest car sales market and the third-largest automaker. In recent years, the UK auto industry has recovered strongly, with exports accounting for around 80% of total production and nearly 60% of exports to the European market. Once the trade agreement with the EU changes from zero tariff to 10% tariff, British auto exports will be frustrated. It will even further affect employment and GDP levels. According to data from SMMT, only 700,000 jobs are provided by the automotive industry for the UK, creating an output value of 3% of UK GDP.

Arndt Ellinghorst, an analyst at ISIEvercore in London, believes that Brexit may cause the UK auto industry to suffer losses of more than 8 billion euros; next year, the number of new car registrations in the UK will fall by 14.4% in Western Europe. Car production will fall by 2.5%.

Local car companies wait and see

Although car companies have mostly "opposed" opinions on Brexit, local companies and companies with existing investment plans almost do not intend to change existing investment plans. Some companies indicate that future development strategies need to wait for the country and Agreements reached by other EU countries, including trade.

Kevin Rose, head of global marketing and sales at Bentley, pointed out that “no matter what the outcome (referring to Brexit), we will follow the established plan and continue to implement the previously announced investment projects.” Opel CEO Karl-Thomas Neumann Earlier, in an interview with the media, the company closed its Bochum plant in Germany last year, but did not intend to close the British factory or withdraw from the UK market. “If the UK exits the EU, our business will remain and investment will continue.” Prior to this, Nissan also announced an investment of £37 million to add a new press line at its Sunderland plant in the UK for the next generation. JukeSUV is ready.

In terms of Chinese automakers, Changan, SAIC and Geely all invest in R&D centers or factories in the UK, and SAIC Chase of SAIC Group has announced that it has officially entered the UK market. However, compared with multinational car companies, the Brexit incident has little effect on the above-mentioned Chinese local car companies. Yang Honghai, the public relations director of SAIC Datong, told the “First Financial Daily” reporter that since the general agent of SAIC Chase in the UK is a distributor in Ireland, the export models of the super-automobiles are all domestically produced and exported, and tariffs have been generated. Therefore, Brexit has little impact on its business development.


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