Toyota and Nissan are reportedly concerned about the threat of unfavorable trade tariffs between the United Kingdom and the European Union. Should that indeed lead to price increases, then both brands want to be compensated by the British government.
Toyota and Nissan have both placed a considerable amount of production for the European market in the United Kingdom. Due to Brexit, it could just be that for some of their products the trade tariffs with the EU will go up. Earlier it appeared that, partly because of the use of parts from outside the EU, these manufacturers may have additional import duties on some cars. Toyota and Nissan explain according to the Japanese Nikkei therefore an important condition on the table for staying in the UK, reports Automotive News. Should there really be less favorable trade tariffs for their British-produced cars, the companies want the British government to absorb this financially.
In the most unfavorable scenario, no less than 10 percent more import duties will be imposed on cars of these two brands in the EU than is currently the case. The British government tries to prevent this and is still negotiating with the EU about the extent to which free trade remains possible. Of course, a lot of employment in your own country depends on this. Nissan builds the Qashqai and Juke in Sunderland, among others, while Toyota builds the Corolla and Suzuki Swace in Burnaston.
If the British cannot come to an agreement with the EU, then the UK will probably have to pull the stock exchange to ensure that Toyota and Nissan are not affected. Otherwise they could just leave the UK. Honda has already decided that it will leave things for what it is. Toyota previously warned about the possible consequences of a (hard) Brexit. Despite similar warnings, Nissan is showing a bit more optimism, as it was announced earlier this year that Nissan is investing a further € 60 million in the Sunderland plant.