Global Associates: Toyota and Nissan were among car manufacturers warning recently that a period of ambiguity would follow a Brexit vote, as new trade deals with Europe must now be renegotiated, which is estimated to take about two years. They said, prior to the vote, that if Britain left the EU it would create big challenges for an industry that employs some 800,000 British people.
Timothy Faraday, Chief Economist at Global Associates said, “The automakers do not have any option but to be cautious with their investment decisions in the UK, including whether to produce new or redesigned vehicle models. Land Rover, Britain’s largest carmaker, which has been operating in Britain for three decades and makes 475,000 cars a year, mostly for export inside the EU. It predicted that its annual profits could be cut by a billion pounds by 2020 due to the Brexit result.”
Exports from Britain to the EU are free of tariffs and duties and Toyota said the new trading deals could see them being reintroduced by as much as 10 percent, damaging prices, margins and sales. The company produced about 190,000 cars in Britain last year and of that number, 75 per cent were shipped to the European Union, while South Korea’s auto association said they were concerned that the departure would elevate costs.
Global Associates Toyota said that it would need to fully analyse the ramifications of the vote on its UK operations, while Nissan said last week the company would likely have misgivings about its position in UK as uncertainties of its operations due to uncertainties in the market.

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