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Japan Auto Stocks Dive on Brexit Vote
Shares in Honda, Nissan and Toyota, which account for about half the cars made in the U.K., have dropped significantly since the U.K. voted on Thursday to exit the EU.
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Shares in Honda, Nissan and Toyota, which account for about half the cars made in the U.K., have dropped significantly since the U.K. voted on Thursday to exit the EU.
Nissan and Toyota shares are down 10% and 9%, respectively, from last Thursday’s closing prices. Honda is down about 8%.
Executives from the three companies have met with Japan’s industry ministry to discuss various scenarios, although companies say uncertainty makes any dramatic decisions unlikely, The Wall Street Journal reports.
Nissan and Toyota has invested £3.7 billion ($4.9 billion) in its British facilities. Toyota and Honda each have spent about £2.2 billion ($2.9 billion) on their operations there.
Honda confirms there will be no change in its plan to launch production of its next-generation Civic small car at its complex in Swindon, England, late this year. But analysts say Japanese carmakers fear that the U.K.’s exit could eventually raise tariffs and make their British facilities more costly to operate.
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