Reports on the news yesterday that Honda have concerns about UK car production if we don't reach a free trade agreement with the EU. Basically, they import many parts needed for car assembly here from the EU on a just in time basis. Any delays because of borders or customs and so on will make life more difficult for them. And that likely applies to other car makers in the UK too. As well as UK industry supplying parts to EU car makers.
I'm still waiting for a UK manufacturer to give concrete reasons why crashing out of the EU will be good for them.
It's the British people who benefit from leaving the EU.Honda can resource their components if necessary. All the grocers have now established future supply sources to be used if cheaper.
Exactly the same for my mate who works in Denmark who buy parts from us and would look elsewhere (and they can) if it meant having to go though any customs. ;-(
That's as maybe, but I can't help but think that they are exaggerating the problem.
The idea that JIT deliveries work to the nearest 15 minutes with the lorry scheduled to deliver direct to Swindon from some factory in Germany after a timed-to-the-minute 12 hour drive (with stop over) is nonsense.
You only have to travel frequently on the Chunnel to find that 2 hour delays to your depart time are common, and that's without the possibility of traffic jams on the way.
It can only work if the delivery company have some storage location this side of the Channel at which to provide a buffer point.
All that will happen is they will have to manage that buffer point differently.
No one expects it to be good for them
They are one of the multinationals who have been receiving far too many of the benefits without giving enough of it back to the hoi polloi. Sharing the cake out more fairly is one of the reasons why many of us voted to leave. And sharing it out more fairly is bound to result in those who have historically been taking more than their fair share being worse off.
When you have traffic jams or speed restrictions you quite often find late JIT lorry drivers tailgating people along through them trying to hold to a schedule based on 56mph in a restricted 50 zone.
That isn't how it works. The logistics allow for some slack time drift but usually sat in a JIT lorry park at or close to the end destination. The planners allow for typical delays - though bad winter storms can affect delivery of parts and in extremis stall production lines.
The really bloody minded places will turn a driver away if they miss their allotted slot and make him wait until they are ready (or reject). A lorry out of position and without the right load on is losing money.
It would add another layer of double handling and associated costs - much like Brexit will pretty much across the board. Still it will solve the unskilled unemployment problem as will need zillions of customs form filling drudges and huge lorry car parking marshals at all our ports.
So you want to punish UK manufacturing industry? How odd!
A "fairer" share of a much smaller post Brexit pie.
In this day and age, it is can't be beyond the wit of man to monitor the 'flow' of such parts between factories by computer and generate reports for the relevant authorities.
you didn't mention anything about his factory using JIT
Nope, I just don't think that are anywhere near as catastrophic as is claimed and making a decision to do something based upon those claims and not what actually happens after the deal is done is stupid
They will be able to pay the hoi polloi considerably less in hard currency terms after a 10-20% devaluation of the GBP and hire and fire at will and on a whim if leading Brexiteers like Dyson get their way.
Honda will be moving to Eastern Europe soon irrespective of BREXIT because that's where all the 'free' grant money from the EU is migrating.
What's makes you think that anything such as car parts will be held up at customs? With the correct paperwork in place the goods will enter the country and be delivered as they are now. What may be different is the price due to import taxation.
I see the UK unemployment has reduced again as a result of all those EU migrants leaving in droves! A win win result.
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