Mexican Media Brands
Honda to Suspend Output in U.K. for 6 Days after Brexit
Honda Motor Co. is the latest carmaker to announce plans to halt production in the U.K. immediately after Britain leaves the European Union at the end of March.
#economics #labor
Share
Honda Motor Co. is the latest carmaker to announce plans to halt production in the U.K. immediately after Britain leaves the European Union at the end of March.
The six-day suspension will enable the company to stockpile imported parts for its Swindon plant in England to offset an expected disruption in its normal supply chain when the current duty- and friction-free trade agreement with the EU ends.
Carmakers are bracing for a “hard” Brexit, which would introduce tariffs as great at 10% and impose customs inspections that are likely to create short-term disruptions to their usual just-in-time supply system.
BMW, Jaguar Land Rover, Mini, Nissan and Toyota all have warned of temporary shutdown or eventual plant closures if the continuing cost of importing components to their British factories rises significantly because of Brexit.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.