Cars Brexit could force Japanese carmakers out of Britain

15:10  13 february  2018
15:10  13 february  2018 Source:   Auto Express

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The post- Brexit future of Japanese carmakers in the UK has been called into question by Japan ’s ambassador following a high-level Downing Street summit. Japanese carmakers employ thousands of workers in the UK.

Brexit could force Japanese carmakers out of Britain . News 9 Feb, 2018 Japan ’s ambassador warns of “high stakes” situation; Nissan, Honda and Toyota employ thousands of UK workers Source: Auto Express Car News.

Nissan Sunderland © Auto Express Nissan Sunderland

The post-Brexit future of Japanese carmakers in the UK has been called into question by Japan’s ambassador following a high-level Downing Street summit.

Speaking outside 10 Downing Street shortly after a meeting of 19 Japanese industry leaders, the country’s ambassador, Koji Tsuruoka, called Brexit a “high stakes” situation, emphasising the importance of the “continuation of healthy, sound trade relations between [the] UK and [the] EU”.

Tsuruoka warned if favourable post-Brexit trade agreements with the UK and EU were not agreed, Japanese companies were likely to leave the UK.

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Brexit could force Japanese carmakers out of Britain The post- Brexit future of Japanese carmakers in the UK has been called into question by Japan 's ambassador following a high-level Downing

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“The question is whether the arrangements that will be reached between the two sides will allow the Japanese companies to continue to operate in the UK," he said.

Bad Brexit deal could see cars pulled from UK showrooms © Auto Express Bad Brexit deal could see cars pulled from UK showrooms

Addressing Japan’s status as a “major investor” in the UK and the EU, Tsuruoka said the continuation of this was dependent upon business cases: "If there is no profitability of continuing operations in the UK - not Japanese only - no private company can continue operations. So, it is as simple as that."

Japanese carmakers employ thousands of workers in the UK. Nissan’s Sunderland plant currently has around 7,000 staff, while Honda has roughly 3,000 at Swindon.

A similar number of Toyota staff build hundreds of thousands of cars and engines at Burnaston in Derbyshire, and Deeside in North Wales. With roughly 80 per cent of cars built in the UK exported, however, favourable trade links are vital for these operations.

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Japan 's government has warned that Brexit could result in the country's firms moving their European head offices out of Britain . Japanese firms employ an estimated 140,000 workers in the UK, with Nomura bank, manufacturing giant Hitachi and carmakers Honda, Nissan and Toyota all having

There are 879 Japanese companies employing 142,000 staff in Britain , including carmakers Honda and Nissan. But analysts said there will not likely be much progress until Japan and the EU wrap up a nearly-finalised trade deal, and details of Brexit are worked out .

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