This article on the Politico website should be interesting for David Davis who thought the German car industry would be banging on the door of the German Chancellor to ensure Britain got a special deal (HERE). The report seems to show German industry is far more focused on keeping the single market together.
"While Britain’s Brexiteers had hoped that German economic interests — losing access to the lucrative U.K. market — would be their shortcut to a pragmatic deal with the EU, that’s not happening. German opprobrium and anxiety has been directed at May’s government rather than translating into lobbying Berlin to give the U.K. a special deal on, say, single market access. The clear message from business is that whatever the costs of Brexit, maintaining the integrity of the EU single market is more valuable".
How often have we heard a Brexiteer say the EU sells us more than we sell them as if German industry is like one of those double glazing salesmen that you can't get rid of without an order. This isn't true, we buy a lot of continental stuff because the quality and value is good. One of the things they "sell" us is 90% of the parts to make the BMW mini - where do we source those from after Brexit?
Now we learn that Nissan is to halt investment plans at their Sunderland plant (HERE), something that won't have an immediate effect but is bound to impact productivity at some point and could lead to the plant being put at risk when "bidding" for future models.
The Daily Mail (HERE) rather disingenuously says UK car production "rebounded" in May, which is technically accurate. It increased by 1.3% compared to May last year but that month in 2017 was marked by some planned shutdowns so it was particularly low. Overall, car production in the UK is still DOWN by 2.9% over the year. The article has the usual screaming sub headings:
- Home demand was up by 13%, though exports fell by 1.5% in the same period
- Fears are mounting for the UK motor industry with no trade agreement in place as part of Brexit negotiations
- Of the cars made in the UK, 4 in 5 models are exported, making frictionless trade with the EU imperative for the survival of the sector
That the EU will give us "frictionless" trade outside the single market and the customs union is a high stakes gamble with the future of Sunderland and other areas like the West Midlands and the Brexiteers and Daily Mail readers may think we have all the cards again - but if they're wrong it will all end in tears.
