pastafarian
Well-known member
Honda decision has everything to do with Brexit
Japanese companies choose the UK as the access point into the EU
Brexit means that access point is either not the same or at worse completely lost
Japan and EU have agreed a new trade deal
Japanese companies have three options;
1. Stay in the UK and risk tariffs
2. Relocate operations to mainland Europe within the EU
3. Return production to Japan
Car production is infrastructure heavy and as such it's must be cheaper to return where your production lines are already set up than build new ones on mainland Europe
There will be EU import tariffs on cars from Japan until 2027. If this decision was down to Brexit they would relocate to mainland EU. Sounds like option 3, return production to Japan as production has declined , there is now existing spare capacity in Japan to accommodate the move