The Brexit has adversely affected the economic and political situation in the U.K. Apart from the political downfall now the country is also facing industrial downfall since March 29, 2019 verdict. The economic relation between the U.K, EU and Japan is getting entangled making it difficult for industrial giants to take decision and prepare themselves for the future consequences. One of the major sectors to be a victim of this industrial upheaval is the automotive sector. Big players like Honda, Ford and Jaguar are changing their plans and perspectives as well. Though these companies claim that Brexit has not directly affected their plans, Brexit has definitely affected the overall auto sector in the Europe especially, the U.K.
Honda Motor Co, has a huge production plant in Swindon, southwest England which produces Honda Civic Hatchback. This plant employees around 3500 people involved in the entire supply chain operations. Honda is planning to shut its operations in the U.K soon and consolidate the entire production unit in Japan from 2021. The post Brexit EU-Japan deal has resulted in elimination of all tariffs making Japan shift production of automobile to themselves. The Brexit agreement has also made Nissan take a similar decision. Nissan is shifting its X-trails production to Japan due to the indecisiveness of the EU-Japan deal. Britain’s biggest carmaker, Jaguar Land Rover has also announced cut down of 4500 positions as a result of the slowdown in sales along with drop in China sales and diesel demands. The current situation of the auto industry only suggests that a hard Brexit deal will be disastrous for the U.K automobile industry.