The “Brexit” is already here

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Photography: Tomek Nacho (Flickr) CC BY SA

By minimum, has won the “yes” to leave the European Union (or “Brexit”). Now today revolves around one of the most important impacts in the history of the European Union. At the moment everything works like yesterday, but in the medium term are going to change things. The bags, one of the best gauges of the panic of those who have money, have spoken: massive drops in the main squares.

The pound has fallen so much since 1985

After a deep crisis that hit the british manufacturers in the second half of the TWENTIETH Century, were gradually falling into foreign hands, or directly closed. The plants of the United Kingdom depend almost entirely on foreign capital, and a good part of that capital comes from the European Union.

have made investments of tens of billions of pounds. The manufacturers say largely that they are not investments in risk for the future, but they will be aware of the conditions in the Uk continue to be engaged with the European Union. The fundamental question is whether there will still be freedom of movement of goods, that is, without tariffs. In a previous article we saw several alternatives.

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Factory of Nissan in Sunderland

will the “Brexit” to the prices of the cars?

it Is possible to. Right now between the United Kingdom and the European Union there are no tariffs, and the goods pass from one place to another in the Channel without the prices to be inflated. In the event that the tariffs become, might reach 10%, so that the consumer will notice an increase in the prices of models manufactured there.

short-term prices should remain stable, because the rupture with the EU is not done from one day to another. You have to revert to the treaties, ahead months of negotiation, and there is a lot of uncertainty. No one still has all of the answers. According to the Real Instituto Elcano, the United Kingdom will not have a more privileged with the continent of which it already enjoyed.

even Though the pound has collapsed today, and he had already lost height in the days before the referendum, that does not mean that the cars of british origin will drop in price quickly. manufacturers tend to keep the prices although the changes of currency fluctuate constantly. In that sense, we should not expect ofertones.

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Quote pound-euro | Source: XE.com

Another possible impact is the export of Spanish factories in the Uk. If existing tariffs, the british will have to pay more for vehicles manufactured outside, so tend to prefer the models of local production, and you may lose clientele. Spain is the second european producer of automobiles, both if we consider only cars and the other vehicles light and heavy.

Not just there is talk of vehicles, also of components. For example, almost a third of the parts of the Nissan Qashqai, produced in Sunderland (United Kingdom) from Spain: motors, gearboxes, etc., The auxiliary industry, one of the cornerstones of the business can also be seriously affected.

What manufacturers are not british have plants in the Uk? A few:

  • Bentley (Volkswagen)
  • Ford
  • Honda
  • Jaguar Land Rover (Tata)
  • MG (SAIC)
  • MINI (BMW)
  • Lotus (Proton)
  • Nissan
  • Opel and Vauxhall (General Motors)
  • Rolls-Royce (BMW)
  • Toyota

The position of the manufacturers, either by statement or by omission, has been to stay in the European Union by the advantages of the single market and a customer base that is annual of more than 10 million people. Discarding the luxury models in the United Kingdom, less than luxurious, which are manufactured are compact, and utility Premium.

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Factory MINI in Oxford

┬┐What about the future?

Depending on the status of United Kingdom with respect to the EU, the manufacturers will have to rethink their strategies. set up plants is extremely expensive, especially if they are as large as those of Oxford (MINI), Sunderland (Nissan) or Swindon (Honda). Tariffs are less important in luxury cars. A customer of Nissan will have much more reluctant to pay that price premium one of Rolls-Royce.

little by Little, you can go by shifting production capacity at european plants, unless used or that have been closed, such as in Bochum (Opel, Germany). It also may be that work in plants japanese or american, the possibilities are fully open. It will be more difficult to produce lower priced models there, except to meet the demand of the british.

finally, there is a consequence, very direct: sales in the Uk have already been cooled down after several consecutive months of growth. This decrease in sales will affect the progress of enrolment overall in the continent, if it is the second-most important market, the impact is greater. The uncertainty will take a greater role from now on.