Thousands of auto jobs in jeopardy as U
Thousands of auto jobs in jeopardy as U.K. faces Brexit
But with formal Brexit negotiations about to begin, the foundations of one key manufacturing industry are jiggling: Autos.
Global automakers support hundreds of thousands of jobs in Britain. Their workers are well paid, and many of their factories are located in communities where jobs are despairingly needed.
May is seeking a accomplish break with the EU — a strategy that is almost certain to mean fresh trade barriers inbetween the U.K. and its largest export market. That could make it more expensive for British manufacturers to import components, and thrust up the price of cars exported to Europe.
“Automakers are getting very jumpy,” said Justin Cox of market intelligence rock hard LMC Automotive. “When you put these obstacles in the way of any business, or just the uncertainty . you see investment diverted elsewhere.”
Here’s where the cracks are beginning to showcase:
In October, Japan’s Nissan ( NSANY ) said it had been persuaded to build two fresh models at its massive production facility in Sunderland after getting reassurances from the British government about Brexit.
The reassurances have not been published, but they appeared to secure Nissan’s future in the country.
That was before May said that the U.K. would be leaving Europe’s single trading market, which permits the free flow of goods and workers across borders.
This week, Nissan’s head of European manufacturing Colin Lawther, told members of parliament that the company would have to “adjust” its business depending on how Brexit pans out.
Asked if the Sunderland factory’s future was safe, Lawther said: “No, I would not say that at all,” noting that a potential 10% EU border tariff would erode Nissan’s profits.
He also urged the government to invest £100 million ($122 million) to support auto suppliers in the country.
Nissan employs almost 7,000 workers at its U.K. plant.
Jaguar Land Rover produced the most cars in the U.K. in 2016, followed by Nissan.
The GMB labor union said this week that Ford ( F ) is planning to slash 1,100 jobs at its engine facility in Wales over the next five years.
The U.S. automaker declined to confirm the job cuts. It said the engine factory’s capability to win fresh business would depend on its “efficiency and global competitiveness.”
Ford has said in the past that Brexit will cost it an extra $600 million in 2017. Part of the cost is due to currency fluctuations.
BMW ( BMWYY ) , which possesses the iconic British brand Mini, does the bulk of its Mini manufacturing in the U.K. But its fresh electrical model could be produced in German or Dutch factories.
German newspaper Handelsblatt cited BMW sources as telling it wouldn’t make sense to invest in Mini’s main plant in Oxford if Britain makes good on its vow to leave the EU single market.
The company told CNNMoney that a decision hasn’t been made yet, but acknowledged that its Oxford factory is operating near utter capacity.
LMC Automotive’s Cox said that continued investment is critical to the industry: “At best, [Brexit] delays business decisions and at worst it prompts investment to be diverted elsewhere,” he said.
BMW has not determined yet where to produce the fresh electrified Mini.
GM ( GM ) is in talks to sell its fighting European business to France’s PSA ( PUGOY ) , which possesses Peugeot and Citroen.
That could put Four,300 employees at GM’s British brand — Vauxhall — at risk.
Politicians and union leaders in Germany, France and the U.K. have all voiced worries that jobs will be lost if the deal goes through.
The British government has raised its concerns about the future of Vauxhall with GM executives.
Indian-owned Jaguar Land Rover should be better placed to cope with Brexit because it charges a premium for its luxury cars and SUVs, making it lighter to absorb any potential fresh tariffs or costs, said Professor David Bailey, a specialist in industrial strategy at Aston Business School.
It also sources most of its parts from local suppliers, permitting it to bypass any fresh import duties.
Thousands of auto jobs in jeopardy as U
Thousands of auto jobs in jeopardy as U.K. faces Brexit
But with formal Brexit negotiations about to begin, the foundations of one key manufacturing industry are wiggling: Autos.
Global automakers support hundreds of thousands of jobs in Britain. Their workers are well paid, and many of their factories are located in communities where jobs are despairingly needed.
May is seeking a finish break with the EU — a strategy that is almost certain to mean fresh trade barriers inbetween the U.K. and its largest export market. That could make it more expensive for British manufacturers to import components, and thrust up the price of cars exported to Europe.
“Automakers are getting very jumpy,” said Justin Cox of market intelligence rigid LMC Automotive. “When you put these obstacles in the way of any business, or just the uncertainty . you see investment diverted elsewhere.”
Here’s where the cracks are beginning to display:
In October, Japan’s Nissan ( NSANY ) said it had been coaxed to build two fresh models at its massive production facility in Sunderland after getting reassurances from the British government about Brexit.
The reassurances have not been published, but they appeared to secure Nissan’s future in the country.
That was before May said that the U.K. would be leaving Europe’s single trading market, which permits the free flow of goods and workers across borders.
This week, Nissan’s head of European manufacturing Colin Lawther, told members of parliament that the company would have to “adjust” its business depending on how Brexit pans out.
Asked if the Sunderland factory’s future was safe, Lawther said: “No, I would not say that at all,” noting that a potential 10% EU border tariff would erode Nissan’s profits.
He also urged the government to invest £100 million ($122 million) to support auto suppliers in the country.
Nissan employs almost 7,000 workers at its U.K. plant.
Jaguar Land Rover produced the most cars in the U.K. in 2016, followed by Nissan.
The GMB labor union said this week that Ford ( F ) is planning to slash 1,100 jobs at its engine facility in Wales over the next five years.
The U.S. automaker declined to confirm the job cuts. It said the engine factory’s capability to win fresh business would depend on its “efficiency and global competitiveness.”
Ford has said in the past that Brexit will cost it an extra $600 million in 2017. Part of the cost is due to currency fluctuations.
BMW ( BMWYY ) , which possesses the iconic British brand Mini, does the bulk of its Mini manufacturing in the U.K. But its fresh electrified model could be produced in German or Dutch factories.
German newspaper Handelsblatt cited BMW sources as telling it wouldn’t make sense to invest in Mini’s main plant in Oxford if Britain makes good on its vow to leave the EU single market.
The company told CNNMoney that a decision hasn’t been made yet, but acknowledged that its Oxford factory is operating near utter capacity.
LMC Automotive’s Cox said that continued investment is critical to the industry: “At best, [Brexit] delays business decisions and at worst it prompts investment to be diverted elsewhere,” he said.
BMW has not determined yet where to produce the fresh electrified Mini.
GM ( GM ) is in talks to sell its fighting European business to France’s PSA ( PUGOY ) , which wields Peugeot and Citroen.
That could put Four,300 employees at GM’s British brand — Vauxhall — at risk.
Politicians and union leaders in Germany, France and the U.K. have all voiced worries that jobs will be lost if the deal goes through.
The British government has raised its concerns about the future of Vauxhall with GM executives.
Indian-owned Jaguar Land Rover should be better placed to cope with Brexit because it charges a premium for its luxury cars and SUVs, making it lighter to absorb any potential fresh tariffs or costs, said Professor David Bailey, a specialist in industrial strategy at Aston Business School.
It also sources most of its parts from local suppliers, permitting it to bypass any fresh import duties.
Thousands of auto jobs in jeopardy as U
Thousands of auto jobs in jeopardy as U.K. faces Brexit
But with formal Brexit negotiations about to begin, the foundations of one key manufacturing industry are wiggling: Autos.
Global automakers support hundreds of thousands of jobs in Britain. Their workers are well paid, and many of their factories are located in communities where jobs are despairingly needed.
May is seeking a finish break with the EU — a strategy that is almost certain to mean fresh trade barriers inbetween the U.K. and its thickest export market. That could make it more expensive for British manufacturers to import components, and thrust up the price of cars exported to Europe.
“Automakers are getting very jumpy,” said Justin Cox of market intelligence rock hard LMC Automotive. “When you put these obstacles in the way of any business, or just the uncertainty . you see investment diverted elsewhere.”
Here’s where the cracks are beginning to showcase:
In October, Japan’s Nissan ( NSANY ) said it had been persuaded to build two fresh models at its massive production facility in Sunderland after getting reassurances from the British government about Brexit.
The reassurances have not been published, but they appeared to secure Nissan’s future in the country.
That was before May said that the U.K. would be leaving Europe’s single trading market, which permits the free flow of goods and workers across borders.
This week, Nissan’s head of European manufacturing Colin Lawther, told members of parliament that the company would have to “adjust” its business depending on how Brexit pans out.
Asked if the Sunderland factory’s future was safe, Lawther said: “No, I would not say that at all,” noting that a potential 10% EU border tariff would erode Nissan’s profits.
He also urged the government to invest £100 million ($122 million) to support auto suppliers in the country.
Nissan employs almost 7,000 workers at its U.K. plant.
Jaguar Land Rover produced the most cars in the U.K. in 2016, followed by Nissan.
The GMB labor union said this week that Ford ( F ) is planning to slash 1,100 jobs at its engine facility in Wales over the next five years.
The U.S. automaker declined to confirm the job cuts. It said the engine factory’s capability to win fresh business would depend on its “efficiency and global competitiveness.”
Ford has said in the past that Brexit will cost it an extra $600 million in 2017. Part of the cost is due to currency fluctuations.
BMW ( BMWYY ) , which possesses the iconic British brand Mini, does the bulk of its Mini manufacturing in the U.K. But its fresh electrical model could be produced in German or Dutch factories.
German newspaper Handelsblatt cited BMW sources as telling it wouldn’t make sense to invest in Mini’s main plant in Oxford if Britain makes good on its vow to leave the EU single market.
The company told CNNMoney that a decision hasn’t been made yet, but acknowledged that its Oxford factory is operating near total capacity.
LMC Automotive’s Cox said that continued investment is critical to the industry: “At best, [Brexit] delays business decisions and at worst it prompts investment to be diverted elsewhere,” he said.
BMW has not determined yet where to produce the fresh electrical Mini.
GM ( GM ) is in talks to sell its fighting European business to France’s PSA ( PUGOY ) , which possesses Peugeot and Citroen.
That could put Four,300 employees at GM’s British brand — Vauxhall — at risk.
Politicians and union leaders in Germany, France and the U.K. have all voiced worries that jobs will be lost if the deal goes through.
The British government has raised its concerns about the future of Vauxhall with GM executives.
Indian-owned Jaguar Land Rover should be better placed to cope with Brexit because it charges a premium for its luxury cars and SUVs, making it lighter to absorb any potential fresh tariffs or costs, said Professor David Bailey, a specialist in industrial strategy at Aston Business School.
It also sources most of its parts from local suppliers, permitting it to bypass any fresh import duties.
Thousands of auto jobs in jeopardy as U
Thousands of auto jobs in jeopardy as U.K. faces Brexit
But with formal Brexit negotiations about to begin, the foundations of one key manufacturing industry are jiggling: Autos.
Global automakers support hundreds of thousands of jobs in Britain. Their workers are well paid, and many of their factories are located in communities where jobs are despairingly needed.
May is seeking a accomplish break with the EU — a strategy that is almost certain to mean fresh trade barriers inbetween the U.K. and its fattest export market. That could make it more expensive for British manufacturers to import components, and shove up the price of cars exported to Europe.
“Automakers are getting very jumpy,” said Justin Cox of market intelligence rock-hard LMC Automotive. “When you put these obstacles in the way of any business, or just the uncertainty . you see investment diverted elsewhere.”
Here’s where the cracks are beginning to showcase:
In October, Japan’s Nissan ( NSANY ) said it had been coaxed to build two fresh models at its massive production facility in Sunderland after getting reassurances from the British government about Brexit.
The reassurances have not been published, but they appeared to secure Nissan’s future in the country.
That was before May said that the U.K. would be leaving Europe’s single trading market, which permits the free flow of goods and workers across borders.
This week, Nissan’s head of European manufacturing Colin Lawther, told members of parliament that the company would have to “adjust” its business depending on how Brexit pans out.
Asked if the Sunderland factory’s future was safe, Lawther said: “No, I would not say that at all,” noting that a potential 10% EU border tariff would erode Nissan’s profits.
He also urged the government to invest £100 million ($122 million) to support auto suppliers in the country.
Nissan employs almost 7,000 workers at its U.K. plant.
Jaguar Land Rover produced the most cars in the U.K. in 2016, followed by Nissan.
The GMB labor union said this week that Ford ( F ) is planning to slash 1,100 jobs at its engine facility in Wales over the next five years.
The U.S. automaker declined to confirm the job cuts. It said the engine factory’s capability to win fresh business would depend on its “efficiency and global competitiveness.”
Ford has said in the past that Brexit will cost it an extra $600 million in 2017. Part of the cost is due to currency fluctuations.
BMW ( BMWYY ) , which wields the iconic British brand Mini, does the bulk of its Mini manufacturing in the U.K. But its fresh electrified model could be produced in German or Dutch factories.
German newspaper Handelsblatt cited BMW sources as telling it wouldn’t make sense to invest in Mini’s main plant in Oxford if Britain makes good on its vow to leave the EU single market.
The company told CNNMoney that a decision hasn’t been made yet, but acknowledged that its Oxford factory is operating near utter capacity.
LMC Automotive’s Cox said that continued investment is critical to the industry: “At best, [Brexit] delays business decisions and at worst it prompts investment to be diverted elsewhere,” he said.
BMW has not determined yet where to produce the fresh electrified Mini.
GM ( GM ) is in talks to sell its fighting European business to France’s PSA ( PUGOY ) , which possesses Peugeot and Citroen.
That could put Four,300 employees at GM’s British brand — Vauxhall — at risk.
Politicians and union leaders in Germany, France and the U.K. have all voiced worries that jobs will be lost if the deal goes through.
The British government has raised its concerns about the future of Vauxhall with GM executives.
Indian-owned Jaguar Land Rover should be better placed to cope with Brexit because it charges a premium for its luxury cars and SUVs, making it lighter to absorb any potential fresh tariffs or costs, said Professor David Bailey, a specialist in industrial strategy at Aston Business School.
It also sources most of its parts from local suppliers, permitting it to bypass any fresh import duties.