stockmarket

UK car industry fears 'huge' disruption after no-deal Brexit – business live


The Toyota car factory, near Derby, Derbyshire.

The Toyota car factory, near Derby, Derbyshire. Photograph: David Sillitoe ~ for the Guardian

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

There’s just 115 days until Brexit Day, and British businesses are getting jittery. The prospect of new customs checks at the border and delays at the ports is alarming CEOs, as they weigh up when to activate their no-deal plans (or furiously cobble one together).

The car industry is particularly worried, given its close links with suppliers across the channel.

And this morning Tony Walker, deputy managing director of Toyota in Europe, has backed Theresa’s May’s transitional deal with the EU.

Speaking on the Today programme this morning, Walker warned that crashing out of the EU without a deal on 29th March 2019 would caused “unimaginable” problems.

Production at its Derby car plant would be severely damaged, Walker explained, predicting:


“stop-start production for weeks, probably months. It would be hugely expensive and disruptive.”

Toyota sends 50 lorries per day through the Channel Tunnel, carrying vital parts. Not only do they all need to arrive, they need to get there in the right order. So any new friction at the border would be extremely serious, especially as Toyota only holds four hours worth of parts.

It’s also not practical to stockpile large amounts of parts in advance, Walker adds.

Martin Burns??????????️‍?
(@MartinBurnsSCO)

Toyota Europe boss discussing Brexit on @BBCr4today, having already waxed lyrical about JIT, build in sequence & low WiP, was asked “What about stockpiling; would that work for you?” The horror in the guy’s voice…


December 4, 2018

SorLuca ?? ?
(@AlarmBell)

Toyota needs 4 hours JIT supplies. Any delay, production stops. Spokesperson prefers no Brexit altogether, but WA is a start.. #r4today


December 4, 2018

Walker will tell MPs on the business select committee about his concerns this morning, alongside Sydney Nash of the SMMT (Society of Motor Manufacturers and Traders), and Dermot Sterne of Welsh manufacturer Applied Component Technologies

And down the corridor, Mark Carney of the Bank of England will also be discussing Brexit. Last week the BoE warned that the economy could plunge into a deep recession if Britain leaves without a deal, with house prices tumbling and interest rates being hiked.

This warning saw the governor labelled a “failed second-tier Canadian politician”; surely MPs will manage some more mature analysis this morning…..

Also coming up today,

After yesterday’s rally, the markets will be choppier today. Relief over the US-China trade truce is being replaced by concerns that a permanent deal will be tough to reach.

The pound may come under pressure, as MPs debate whether the government would be in contempt of parliament for not releasing its Brexit legal advice. This potential bombshell will overshadow the start of the debate on Theresa May’s deal.

Labour Whips
(@labourwhips)

Good morning on another huge day in Parliament where the order paper and process will be key. We have a privilege motion that sees the Government facing the unprecedented judgement of being found in contempt of parliament before the start of 5 days debate on May’s Brexit deal 1/x pic.twitter.com/YMhRRd4DQ0


December 4, 2018

On the eurozone front, euro finance ministers have been up all night arguing about 2019 budget plans, and the push for closer monetary union.

Mehreen
(@MehreenKhn)

??We have a deal at #Eurogroup. EU leaders will sign off on an EMU package that *will* include the mention of a eurozone budget that says “stabilisation somehwere in it ! Agreement took over 15 hours


December 4, 2018

Kathimerini English Edition
(@ekathimerini)

Eurozone finance ministers have formally approved the #Greek budget for 2019, which cancels the planned pension cuts for 2019 https://t.co/FJrdpNazS2


December 4, 2018

The agenda

  • 9.15am GMT: Treasury committee hearing on The UK’s economic relationship with the European Union, with the Bank of England
  • 10am GMT: BEIS committee hearing on Leaving the EU: implications for UK business, with the car industry





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.