Sunday, February 03, 2019

Withering on the Brexit vine

It looks likely that in the next few days, Nissan will announced that it will not go ahead with a planned investment at its plant in Sunderland. The Government promised Nissan in 2016 after the referendum something, though what is not clear. Why Nissan executives at the time accepted assurances that ministers were not in a position to deliver is one of the many unknowns of Brexit. I suspect however that Nissan's pending announcement will be the model for Brexit. Major international companies have significant investments in the UK. They won't abandon them overnight, once Brexit happens. But they will be left to be run down over the coming years. Plants in Europe will get investment, plants here will be maintained on an on-going basis until such time as patching up and cannibalising aging equipment is no longer viable. Factories will wither on the Brexit vine.

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