In practice, you're right Stan, on cutting margins in the event of a No Deal. I was just referring to BD's point that they would sell to someone else. We'll continue to be a major market for EU goods. It's clear the German car market is anxious that a trade deal is reached. At some stage, this will percolate through to Merkel, and Macron will face the same pressures from Renault, Citroen etc
The rest of the world will be queuing up to trade with us, Strolls. If we don't get an EU deal, I'll give up my German car in protest, in favour of a nice Japanese job
Nissan and the others aren't going anywhere, particularly after the tax breaks we'll give them with net EU savings of circa 10bn p.a.. We have a great workforce here.
What about the £350m per week for the NHS? In reality there will be no spare cash because we'll most likely be in recession. We do indeed have a great workforce, but they've been sold down the river.
My comment said IF we don't buy from the EU (which was aimed at Cols point, that they need our business more than we need theirs). I don't think we'll stop buying from them, but we might find they stop buying from us and compete against the people we do need to sell to in the future. If anyone has any money left to buy cars, that is.
...and my point is that if we don't buy from German car manufacturers, they'd be hard pressed to find the new markets to which you refer to make up the loss
They won’t stop buying from us because our stuff will be sensationally cheap. But all we seem to be talking about is the trade in things rather than the trade in services, which is much more important as an export to us. I have no idea what they are discussing here. There is a powerful incentive (profit) for European countries to develop their own service sectors, and many of the companies involved are global and quite happy to shift their operations about, often it’s just office space.
Net U.K. contribution to EU 2016 £8.6bn. How much will we spend on increased customs and immigration services, setting up all our own regulatory agencies, new trade negotiators and monitors etc etc.? After maintaining the £4.5bn we get from the EU for farmers and the poorer regions. So the Brexit ‘dividend’ is about £4bn a year, and I’m betting more than that will be spent on things we need to put in place to replace things we got from being in the EU. There are no savings.
All those cars made in the U.K. we currently export to the EU? It's why jaguar are expanding in Austria
We're hardly a car exporting nation, unlike Germany and France. Big incentive for them to maintain ease of access to our market. I see Merkel has suggested tonight that a trade talk start may be approved in December
If some of the money is used for control of borders including security and negotiating worldwide trade deals, then it's money well spent