Dear ATS Readers, Writers,
The irony of political decisions, when government tries to do one thing but creates the opposite.
It is EU politics really, so I couldn't put it in US Political Madness forum...Ha! My best guess I hope is ok.
Anyhow.. not good news at all for what happens to be my most favourite car brand. That happens to be the Mini Cooper.
I own one of the JCW Clubman"s AWD, and am as avid a fan of the Mini driving experience as about anybody could be..so, it kinda struck close to the
heart for me..Ha! Those die hard Porsche, BMW, Jaguar, whatever it may be .. "car enthusiasts" can relate to the "guy thing" with bloody cars!
Wives usually don't understand it fully..Ha! The ladies reckon we are "nutters" most likely.
Brexit Bulletin: Job Cuts Come
to Car Country
In his 50 years working in Britain’s car industry, John Cooper has survived plenty of upheavals. None is scarier than the prospect of
Being split off from their biggest market means the job cuts and production slowdown U.K. carmakers have imposed the past few months could be just a
prelude to wholesale shutdowns.
The shock is only beginning to hit. Since October, 650 of Cooper’s colleagues have lost their jobs at the factory where Vauxhall Motors churns out
Astra hatchbacks. The remaining 1,200 staff worry the plant may close if the U.K. loses tariff-free access to Europe. Across the River Mersey from
Vauxhall’s factory, Jaguar Land Rover is planning production cuts.
“People shouldn’t underestimate the dangers that Brexit’s bringing,” Cooper, a union representative, said outside the sprawling factory in the
town of Ellesmere Port, near Liverpool, where he’s worked since he was 18. “Why would Nissan continue to invest in the north east when it’s got
a plant in Spain where it can build the same car without a 10 percent tariff?”
If Prime Minister Theresa May gets her way, by next year Britain will start severing ties with the bloc after a transition period, including quitting
the customs union it’s been part of since 1973. Whether duties are imposed after that is still up in the air as London and Brussels wrangle over the
terms of their divorce.
Tariffs and other hurdles to trade could be disastrous for the automotive industry since parts routinely move across borders several times during the
manufacturing process. Take the BMW Mini, manufactured in Oxford. Before reaching the production line, each engine crankshaft is made in France,
shipped to BMW’s U.K. engine plant in Hams Hall near Birmingham and then to Steyr, Austria for assembly.
Whoa, not good.... and it;s not just my favourite make of car either that is threatened....
It further stated...
The cost of assembling a car in Britain could increase by £2,372 ($3,337) under a scenario where a 10 percent tariff is imposed, according to
estimates of London-based PA Consulting. Plant closures are most likely at Japanese-owned Honda Motor Co. and Toyota Motor Corp. since they export
most of the cars they make in Britain, it said.
Foreign companies won’t stay “if there is no profitability of continuing operations in the U.K.,” Japan’s ambassador to the U.K., Koji
Tsuruoka said earlier this month. “It’s as simple as that. These are high stakes that I think all of us need to keep in mind.”
So, there you go folks... it would seem there is a very good possibility of ruining a large UK business sector, CARS....with the Brexit.
But then again, I understand that the source is a anti-Brexit leaning news source... but that does not take away from the decisions already made, and
forthcoming in the UK auto industry..and the most likely increase of thousands of dollars in production costs...
If they had to increase Mini prices by the same amount, their sales, of course; would disappear! As would ANY vehicle made under such price
"penalties". People will buy the MUCH less expensive competitors cars; that are getting to be pretty sporty, and fast in their own right.
All of these auto jobs are GOOD paying/providing a solid "middle to upper middle class lifestyle" to the skilled workers who build the cars, and
their families. There is also the businesses that service all of these employees who work at these assembly plants, etc. Cafe's, repair shops,
clothing, etc, etc..you folks get the gist I am sure.
Unless they are deliberately trying to destroy the UK auto industry.... they need to "make the deals needed" to keep the industry alive for the
economy of the UK if for nothing else.
Anyhow, have a read of the whole article, and decide for yourselves..
In my opinion it doesn't bode well. By law, or in "punishment" for leaving the "tribe of former nations", (E.U.)??
Keeping my fingers crossed for my good dearly loved Mini Cooper Works employees.... and all the other car makers..and of course the thousands of jobs
that support the finished products.
When my dearly beloved Australia decided to end ALL car manufacturing....it was a sad day for all Oz folks. I think Holden was the last cow to come
home to the barn and close it's doors in Oz..
The "collateral damage in jobs lost"; due to the Holden plant shutting down cost thousands more jobs, besides the workers at the Holden assembly
plants in Oz! A lot of good people had to scramble to financially survive this "shake up" of all cars stopped being built in Oz.
Good luck UK... you voted, and it was leave...
Now, make the deals to sort this out, or the Conservative Party in the UK will be out of power for a VERY long time I reckon?