BREXIT 3/4: Impact on production in Britain
- If the establishment of customs barriers was adopted, the cost of a vehicle imported into the EU from Great Britain would be higher. In this case, would manufacturers still they have an economic interest in producing in Britain? And if manufacturers decide to leave this country, would they have the capacity in Europe to absorb this production?
- Today, British car production is represented primarily by six major manufacturers (Tata, Renault-Nissan, BMW, Toyota, GM and Honda). Only Tata (Jaguar-Land Rover), the largest producer in the country, produces at the maximum of its capacity in Britain and has no additional capacity in Europe. The group should wait for the opening of its Slovak plant in order to repatriate part of its production.
- Other carmakers, as shown in the graph below, all have sufficient capacities to host models currently produced in Britain. Customs barriers having an impact only on mainstream brands, luxury brands (mainly Bentley, Rolls-Royce, Aston Martin) could continue to be manufactured in Britain.
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