What have govt promised Nissan?

[lljkk]

How could Nissan be "shielded from Brexit"? What kind of Brexit would that be?

[albertcampionscat]

Whatever it is, we won't be told. Great.

[megletthesecond]

We'll probably find out in a decade or so.

[JedRambosteen]

That they'll offset the cost to Nissan of any export tariffs? That's my guess.

[lljkk]

Is Offset cost strategy Just 4 Nissan, 4 all car manufacturers? Other big industries? all businesses? How will it be funded, who is paying??
What's the plan Stan....

[JedRambosteen]

I have to emphasise I have no inside knowledge or particular insight for my post above. Just that if I was a big hitter like Nissan with a government that was shitting itself about Brexit & needing a good news story to polish the Brexit turd, I'd be saying "make us a deal so good that we won't up sticks to Germany/Eurozone, or else". Whether anyone else gets it?? Whatever has been agreed no doubt has an iron clad NDA and there's no reason to think, spin achieved, anyone else will benefit. (Sorry, the last 6 months has really fed my cynicism.)

[RockCrushesLizard]

I thought it was more likely that Nissan want to stay because of the low pound - the cars effectively become cheaper to make if they are selling abroad and paying wages here?

[ItsAllGoingToBeFine]

But our wages aren't particularly cheap compared to say India, and I'd we aren't in the EU they'll have to pay import duty on all the parts/materials they bring in to manufacture with, and then again when they export.

I'm also interested to know how what the government has promised is allowed under the EU/WTO agreements.

[Unicornsarelovely]

Most of their base materials are imported. Sunderland is an assembly line not a manufacturer from scratch do costs will increase as the pound goes down.

I expect they've been offered state aid to counteract any additional costs as a result if Brexit. Now that this is on the table, I'd be amazed if Honda, Toyota, BMW, the banks etc weren't all in line too and getting similar promises. Good job no extra funding was promised for the NHS - it will be propping up international businesses for the foreseeable.

[ItsAllGoingToBeFine]

I expect they've been offered state aid

I thought state aid was against EU rules?

[OhtoblazeswithElvira]

I thought state aid was against EU rules?

It is. But I suppose once out of the EU the government will be able to use our taxes to prop up as many private companies as they want

[BeezerBubble]

We won't be in the EU so their rules will no longer apply. To late for the steel industry sadly.

[ItsAllGoingToBeFine]

But will the EU want to trade with us if we do that? And don't the WTO have similar rules?

[jaws5]

Never mind that WTO have rules too, the mantra is "countries are queuing up to do deals with us" - even after Australia's trade minister said that neighbouring trading unions are the best way, Norway prioritising own deals with EU ahead of UK, etc. Facts are irrelevant now because "we've got our country back". My only hope is that there will be some politicians with the backbone to put the short term and long term interest of the country before the "will of the 52% only, now less of the people"

[Kaija]

Vince Cable thinks the assurance is that we are staying in the Customs Union

https://www.theguardian.com/business/2016/oct/28/vince-cable-assurances-nissan-uk-customs-union-tariff?CMP=sharebtnn_tw

Which could be good news

[lljkk]

does customs union mean freedom of movement 4 ppl I think not??
Would it be c-union only for manuf. goods, like Turkey has w/ EU?

[ItsAllGoingToBeFine]

lljkk it all depends what the UK manages to negotiate

[unexpsoc]

We could not underwrite the tariffs that would have to be paid - this would be contrary to WTO rules. Additionally, once we offered it to one company, we would have to offer it to everyone, so not as if we could hide it as a development grant.

Sunderland has a factory and workforce that Nissan have invested in massively over the years, so it would cost them a lot more to move than they would ever openly admit.

My assumption would be that our elected MPs (and our unelected PM) have told them what the plan is (you know, the one that it is too dangerous for us to know), and that it includes Single Market access (if not membership).

Funny really, the Japanese Prime Minister might have achieved what our own electorate could not - keeping us in the Single Market.