Cars are seen outside the Toyota car showroom in Stockport, Britain, in May. Photo: REUTERS file
business

Toyota, Nissan to seek reimbursement from UK if Brexit talks fail: Nikkei

49 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Thomson Reuters 2020.

©2020 GPlusMedia Inc.

49 Comments
Login to comment

The British Government don’t owe them a penny. If they don’t like whatever the new arrangements are, they are always free to leave. Although hopefully they’ll see there is more benefit to staying in the UK long term.

2 ( +24 / -22 )

Simian Lane

Well put. Completely agree.

1 ( +21 / -20 )

And why should the UK reimburse them? Does Japan put any consideration to the well being of people when they increase the tax?

14 ( +27 / -13 )

Boris should adopt Millwall FC's 'No one likes us, we don't care' slogan.

Seems some posters here would love it.

18 ( +22 / -4 )

Agree with all of the above. Good riddance! Especially to Nissan.

6 ( +19 / -13 )

Obviously having big car plants in the UK for the European market is unsustainable if the UK doesn't have a trade deal with the EU. If one isn't put in place, they will need to leave eventually.

They won't leave immediately, but they will in time, killing off the jobs in places like Sunderland, which ironically voted for Brexit.

16 ( +20 / -4 )

Ah, a bright and sunny day in the photo of 'Ole Blighty. The situation is cloudy like the weather.

5 ( +8 / -3 )

ole Blighty!

cut off their hand to spite their foot..

Outlook for the U.K economy..

Really gloomy with endless job cuts.

8 ( +16 / -8 )

Another case of corporations expecting to socialize their risks and privatize their profits.

14 ( +18 / -4 )

I was all for keep the UK within the EU,but we live in democracy and the majority of britons made their choice which we must respect.

For sure Toyota and especially Nissan should better keep their mouth shut because this is an issue between two sovrane territories and no matter how will be the outcome they have to respect it,and if they don’t like it then they can do their moves,but they can’t play the oyaji tacticts that they do in their own island.

6 ( +14 / -8 )

Nissan has a manufacturing plant in Sunderland, north-eastern England, which employs 7,000. That factory would be "unsustainable" if Britain leaves the EU without a trade deal, Nissan said in June.

Blackmail can be in many forms.

Ok, so the nissan plant in spain was on the chopping board because spain was leaving the EU. Nissan is not doing well in any market, being unsustainable has nothing to do with brexit but rather poor management.

10 ( +13 / -3 )

Good luck with that...

7 ( +9 / -2 )

ORDER!

0 ( +4 / -4 )

The British Government don’t owe them a penny. If they don’t like whatever the new arrangements are, they are always free to leave. Although hopefully they’ll see there is more benefit to staying in the UK long term.

Hello Anybody Home

Honda has confirmed it will close its Swindon car plant in 2021, with the loss of about 3,500 jobs.

9 ( +12 / -3 )

Yes, clumsy move by Japanese car companies. They chose to locate in the UK which always had only one foot in Europe and wasn't even in the euro. They are responsible.

On the other hand these and other foreign companies in the UK will obviously slowly pack up and leave once the UK exits the common market. Boris and co. will be responsible for that.

1 ( +7 / -6 )

This may be justifiable. If a company sinks billions of dollars/ponds/yen into manufacturing plants and the associated support services that go with it, and the UK government changes the playing field which then severely disadvantages them through no fault of their own. Wouldn't it seem logical that they should negotiate/seek damages for their losses?

If you were to build a house with council consent and plant a nice garden , and the local council ran a bulldozer through the first 3 metres of your property to make the road wider . . . . . you'd be asking for compensation too.

-9 ( +7 / -16 )

Easy enough, the Tariffs from BMW, Benz, VW and Audi sales should more than cover it :-)

-6 ( +4 / -10 )

You leave Europe, we leave UK. Unless you can convince us otherwise. How hard is that to understand?

4 ( +10 / -6 )

Yet Nissan decided to leave Spain, strange that

Yes, clumsy move by Japanese car companies. They chose to locate in the UK which always had only one foot in Europe and wasn't even in the euro. They are responsible.

1 ( +5 / -4 )

Simian lane - agree. Bye bye Nissan and Toyota. And Honda at Swindon are still using 19th century management practices. Time to modernize your thinking Japan.

8 ( +12 / -4 )

If you were to build a house with council consent and plant a nice garden , and the local council ran a bulldozer through the first 3 metres of your property to make the road wider . . . . . you'd be asking for compensation too.

The only thing wrong with your analogy is that the bulldozer lacks money for spare parts, the road is being downgraded to a bush track, and the property with the lovely garden is now an unkempt mess and on the market ever since the owner was retrenched.

-5 ( +4 / -9 )

Should’ve been a second referendum. Britexit damage is just beginning.

-4 ( +5 / -9 )

William77Today  08:22 am JST

I was all for keep the UK within the EU,but we live in democracy and the majority of britons made their choice which we must respect.

Only around one third of ELIGIBLE VOTERS voted for Brexit, that is not a "majority of britons".

Ah_soToday  07:38 am JST

They won't leave immediately, but they will in time, killing off the jobs in places like Sunderland, which ironically voted for Brexit.

Yes, I think you will be proved right, it's just a matter of time.

2 ( +8 / -6 )

Agree with other posters, the UK shouldn't pay Japan a penny. It's the UK's rules and they have decided to leave the EU. All foreign car factories will have to close, but the UK shouldn't be building cars in the first place, their quality is garbage.

4 ( +11 / -7 )

Why? A privately own business holds any government responsible for their own decisions? It's I'm guessing Japan's Buisness familys have been subsisted by the government for decades and expect all governments to do the same not realising other countries don't do that.

5 ( +10 / -5 )

As japan inc always act as a socialist entity and companies have no individual stands nor, given the odd exception, any intelligent management, all other major Japanese companies in Japan will follow Toyota’s moves.

The brexit is one of the UK’s most historical mistakes. They had the best conditions of any among the 28 and one of the countries benefiting most of it.

But it is those with nostalgia for the Empire, still thinking Britannia rules the world, which will doom the UK ‘s economy en possibly will be responsible for the implosion of the Uk, with both Scotland and northern Island leaving the UK.

Mr Johnsons wish to be remembered by history will come true but maybe not in the way he dreams about

0 ( +6 / -6 )

UK shouldn't be building cars in the first place, their quality is garbage

As a Brit, I agree with this. Brexit means Brexit, no more special treatment to foreign companies in the UK, most of them will leave the country anyway leaving the UK better able to improve our godawful quality problems.

-2 ( +5 / -7 )

The unit cost for car production is poised to decrease year on year in the UK for decades.

Once Japanese compatplayed the long game; no longer....

0 ( +2 / -2 )

I think we all know what the Japanese response would be if the headline were:

Aston Martin, Dyson to seek reimbursement from Japan if TTIP talks fail: Nikkei

4 ( +7 / -3 )

 Although hopefully they’ll see there is more benefit to staying in the UK long term.

what benefit will that be Japan currently has an FTA with both UK and EU meaning they can export their cars there will little to no tax. If the UK cant get 0% tariffs to the EU , which seems unlikely, then it would be far cheaper to manufacture in Japan or build plants in the EU. 80% of the UK’s car production is exported, of which 54% goes to EU. yeah dont see how this is going to end well for the UK

5 ( +8 / -3 )

Easy enough, the Tariffs from BMW, Benz, VW and Audi sales should more than cover it

when those 1000s of UK jobs are relocated to the EU or back to Japan then the lost income company taxes wont even come close, remember UK just signed a FTA with Japan

3 ( +6 / -3 )

The leavers are slowly starting to understand brexit. I think.

How is this for sovereignty ?

Sure, It is not brussels now dictating policies , now it is Toyota and and Nissan.

-1 ( +4 / -5 )

If the UK cant get 0% tariffs to the EU , which seems unlikely, then it would be far cheaper to manufacture in Japan or build plants in the EU.

Japanese companies will not build plants in the EU.

They would move production back to Japan. The EU-Japan trade agreement means that it is easier for Japan to manufacture the cars in Japan and then ship them to the EU. That is why Nissan closed its Spanish plant and moved production back to Japan.

7 ( +7 / -0 )

sovrane territories

Try again. It's sovereign territories.

3 ( +3 / -0 )

These companies absolutely champed at the bit to support a Brexit UK, without thinking one iota of the consequences. They won't see a pence of compensation if they lose out as a result, nor should they.

-1 ( +3 / -4 )

The UK made lots of sense for international businesses. The

-4 ( +0 / -4 )

but they can’t play the oyaji tacticts that they do in their own island.

Yes they can. And I bet Johnson blinks first.

These companies absolutely champed at the bit to support a Brexit UK, 

No they didn't.

LRJ already moving a lot of UK production to Slovakia.

UK's going down the gurgler.

4 ( +5 / -1 )

The world has learnt from free trade, it's time Japanese corporations did too. There's no returning to globalization, not after covid, not after Chinese slave labour camps.

Japan's foreign ministry should get going and negotiate as many bilateral trade deal as possible, That's the future. Bring manufacturing home so your own government can negotiate for you.

-2 ( +1 / -3 )

Are they having a laugh? I’d like to see Japan doing it first.

Petrol cars are on their way out in the U.K. anyway.

-1 ( +2 / -3 )

Seems this section might be key: “the carmaker said it had won reassurances from the British government that Brexit would not affect its competitiveness.” Government agencies regularly offer perks to foreign firms in order to get them to invest - if they’re backpedaling on that, Nissan and Toyota might have a case.

More to the point, I suspect the car makers feel both they and the local employees lose if there’s a no deal, so they’re signaling to the government that it needs to get done.

2 ( +4 / -2 )

The EU and UK will have a deal, neither side can afford not to.

UK's lifeline relies on EU. And the German automakers would hang Merkel if their cars got a 25% markup.

Japan already have FTA with both regions :)

-3 ( +1 / -4 )

Yes, clumsy move by Japanese car companies. They chose to locate in the UK which always had only one foot in Europe and wasn't even in the euro. They are responsible.

The Euro didn't happen until 1st of January 1999, with the physical currency not appearing until 3 years later.

It was Margaret Thatcher who wooed Nissan, Honda and Toyota to the UK in 1984, 1985 and 1989 respectively, with the promise of free access to the Single Market in an English speaking country with great golf.

At the opening of Nissan's Sunderland plant on 8th September 1986, Thatcher called it:

“confirmation from Nissan that within the whole of Europe, the United Kingdom was the most attractive country – politically and economically – for large-scale investment.”

⚠︎ Politically and economically the UK is reversing down the fast lane. ⚠︎

BoJo's (largely non-domiciled) vulture capitalist chums win big whatever the outcome. CRASH, BANG, WALLOP, KERRRRRCHING‼️

4 ( +5 / -1 )

Another one of those veiled threats by the masters.

-2 ( +1 / -3 )

And the German automakers would hang Merkel if their cars got a 25% markup.

with over half of UK car exports going to the EU 25% on UK cars would be death overnight.

EU can and will match any tariffs the UK impose. EU can now get those Japanese cars from Japan tariff free, checkmate. LOL

0 ( +2 / -2 )

The UK made lots of sense for international businesses

made, past tense, over 800 billion pounds of capital outflow from the UK show that its not anymore

1 ( +3 / -2 )

"We urge UK and EU negotiators to work collaboratively towards an orderly, balanced Brexit that will continue to encourage mutually beneficial trade," Nissan said.

What do you think that we have been trying to do for the last past 4 years? its plonkers like Juan Junker have been throwing spanners into the works constantly, constantly wrecking negotiations, If you go onto YouTube there is a whole bunch of EU politicians that want the UK to remain and trade with in a free market. As for wanting compo from the UK government hahaha not a chance, I know how much they build cars for at Burnaston, and I know how much they sell them for, how about taking a bit of a price drop to cover the 10% difference? Toyota will still be making a good profit, believe me.

There is also talks about Toyota pulling out of the UK and setting up in Turkey, if this goes a head how about the UK government suggesting to Toyota to compensate us for causing thousands of job losses!!! indirectly and directly?

And if Toyota does move out of the UK we should charge them for importing there car into the UK.

-3 ( +0 / -3 )

If all else fails, a protectionist approach to Mini and Jaguar Land Rover (let's pretend they're not all building their latest SUVs in Central Europe) would be a boon to the AA and RAC. Think of all those new jobs!

0 ( +0 / -0 )

If all else fails, a protectionist approach to Mini and Jaguar Land Rover (let's pretend they're not all building their latest SUVs in Central Europe) would be a boon to the AA and RAC. Think of all those new jobs!

Wouldn't surprise me if BMW moved Mini production to Germany or perhaps an Eastern European country and Tata brought Jaguar and Land Rover production to India.

0 ( +0 / -0 )

The Japanese car makers didn’t decide on the UK for its beautiful weather and fine cuisine. They were given incentives to set up in the UK as their European base. The not so secret meetings between Nissan a few years ago led Nissan to hint that things were going to be fine... What were they promised?

Of course they will be leaving, the European trade deal with Japan means they can now ship from Japan tax free. Brexit will only speed this up. And the UK will continue its ever downward spiral.

3 ( +3 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites