I’m honestly confused......so are they saying that the X trail will be effected by Brexit uncertainty but the other models, ie the Juke and Qasqui won’t be.......how come ?? Someone please explain.
I'm confused too TBH, but Ellers seemed to be suggesting that moving production back to Japan was related to the recent EU-Japan trade deal, which, if correct, would mean that it is a Brexit-related decision, because we won't benefit from that deal. I think.
But surely that still wouldn’t explain why only that particular model is gonna be the only one effected.....or would it ?? Sometimes I think all this ****e is just there to confuse normal people
I'm sure that whatever the reasons, it's purely to do with how Nissan can prosper and how beneficial it is to themselves.
I don't know the details of the case, and haven't followed it closely, but thinking it through from a business perspective, it's easier to move production of a new model (assuming production hasn't started yet?) to another country than it is to move an established product line. Moving an established product line would involve training of new people (or new training for old people), installation of new machinery or tech etc which exists elsewhere already. Setting up a new line from a blank canvass [into one of your existing factories] would be easier to do somewhere new. IMO this type of opportunity cost, assuming that is what this is, will be one of the biggest impacts of Brexit. As I say, no idea if this specific case is due to Brexit, but just trying to answer the question as to why a business might move a new line but not established ones. Edit - I've worded this badly and don't have time to rewrite it but I hope it makes sense!
If the Nissan decision was Brexit related, surely their decision would have been made after March 29 when they get a clearer picture of the outcome. And surely it would have gone to France, particularly as Renault own a 43% stake in Nissan. Seems like a commercial decision to manufacture the diesel SUV in Japan.
As I said earlier, they probably won't sell it in Europe, or else they would have moved production there.
What you have just written actually strengthens the argument that this is Brexit based you class yourself as normal? Gordon Bennett. It may be something along these lines - worldwide demand for hideous diesel SUVs has declined quickly. Nissan no longer need two plants making this model, that would result in overproduction. They have a choice between producing in Japan (where I assume they already make this model) and investing to produce in the UK. The UK might no longer have as easy access to European markets as Japan does, given the EU-Japan trade deal. Their financial analysts have done the sums and even the £80m Tory bribe to them to invest in a new line in Sunderland was not worth it. But the already made investment there on the Cashcow production line might still be able to pay for itself, and would be very expensive to write off. the Cashcow is a smaller, cheaper car than the X trail, definitely higher volume. So it’s a combination of things, reducing production overall is due to market conditions, not investing in the UK might be more ease of trade/Brexit.
Does that make a difference? They can sell with no or low tariff into the EU, but they still have transportation costs. And as far as Nissan is concerned, there may still be a deal between the UK and the EU which keeps the tariffs as they are now anyway. Seems like a decision based on normal commercial factors, giving the Lib Dems an opportunity to have a grouse.
It's a pure business decision. Let's be honest, the diesel debate cant hold much weight otherwise they wouldn't be making them full stop! Must be the eco/petrol model and maybe the structure is already there in Japan. They can then manufacture and distribute to the EU with the new Japan/EU trade agreement. So it's understandable when they stated that Brexit left uncertainty. It will just make up a percentage of their business plan for the x trail.
The irony is that the Nissan Sunderland plant was opened, after intense personal involvement, by Margaret Thatcher, and used as a shining example of the power of the Single European Market, of which Thatcher was a major architect and avid fan. Now her successors can’t even handle a simple bribe and secret promises to get a new investment. Maggie, Maggie, Maggie! Oi, oi oi!
Meanwhile the European Air Safety Agency has grounded Turkmenistan Airlines, which flies from the UK, for safety reasons. Any one know if the Civil Aviation Authority has the skills and capacity to undertake these checks once we are no longer a part of EASA? If not, add it to the additional unexpected cost ledger and hope nothing horrible happens before they are up to speed.
