Brexit: Honda Motors reveals how the Tariffs will affect them post-Brexit!
The Tories-DUP Government can come with their promises and keep the people in the dark. But when one company who has their European Headquarters there and is an international car-producer, their advice and their reasons for their production and sales should be listen too. These sort of facts from them is because they are thinking of their future and their possible profits. The Honda Factory is in Swindon and has 4,000 workers, also 500 people at the Headquarter. That means the Brexit can have effects for 4500 workers directly, plus the traders and mechanics who are label based.
Therefore, this part of their written statement is very damaging:
“Although we are looking to increase our share of exports to non-EU destinations, the US in particular, 35% of Honda’s UK production would still be exposed to tariffs, ‘resulting in increased costs to’ Honda’s business, loss of competitiveness and potential cost increases for consumers. As we have experienced with the Israel market, when failure to meet Rules of Origin thresholds resulted in the need to pay tariffs, a 10% tariff would make our vehicles uncompetitive, and would impose costs we cannot afford to absorb” (Honda Motor Europe, 2017).
When leaving the European Union the tariffs between them and non-EU Member Nations. This will hurt the bottom-line of the production and also the exports of Honda Production from Swindon. That should worry the Tories-DUP as this is one manufacturer with this result and these findings. Who knows what the steel-mill in Wales, the Whiskey production in Scotland and whatnot they are selling from Newcastle. Therefore, the exports and Yorkshire tea might be more expansive after the Brexit. When considering the 10% added tariff on the manufactured goods in the UK after they have left. This will hurt more businesses than Honda. Honda is just proving the difficulties.
This is even more important to look at, since the Tories Government have kept the public in the dark over their assessments and their reports of the aftermath and result of the withdrawal from the EU. Therefore, the written statement from Honda. Gives clarity and also an explain how the leaving will effect business. Peace.
Honda Motor Europe (BRA0008) – ‘Written Evidence’ (20.10.2017)