NIssan - what deal?

In 2016 there was a big story that ran for a few days about the Government doing a deal with Nissan. This deal supposedly made the next gen of Nissan cars guaranteed to be built in the UK.

Fast forward to 2019 and no Nissan have reneged on the 'deal'. In part no doubt as the UK Government promised a deal of sorts that has not as yet materialised.


However, all companies are blaming everything on Brexit - redundancies; Brexit, outsourcing; Brexit; slow revenues; Brexit. It is just way too tempting for the PR flacks to use a ready made 3rd party excuse which has the handy benefit of not being in the control of management.


Nissan, have bigger problens, diesel sales have gone off a cliff and their new X-trail in entering  a much more competitive X-over SUV market. So, perhaps running a smaller line in Japan is a better hedge, plus with their new EU trade deal, this does not cost Japan in terms of export taxes. After all of this, is the effect of Brexit on just in time delivery. So a second or third order issue.


Which to me neatly sums up the Brexit impact, Remoaners see its effect everywhere, leavers that Nissan is doing this only for non-Brexit reasons. Both are wrong, a no deal Brexit will be very bad fro manufacturing businesses in the short-term, even with some of the prep happening now.


So there is a Brexit effect, but perhaps it is not as serious as meaning the Queen will need to flee to the Colonies for the foreseeable.

from Capitalists@Work http://www.cityunslicker.co.uk/2019/02/nissan-what-deal.html