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Pernille Rudlin
@pernilleru
, 18 tweets, 5 min read Read on Twitter
Thread on Japanese automotive supply chain part 4. Summary of so far - crash out Brexit likely to lead to immediate cutting out of UK/shut down of production, hard Brexit after transition period will lead to closure of plants by 2021/3 because no new models allocated to UK now 1/
Soft Brexit, with frictionless trade after transition period - will still be shrinkage of Japanese car production in UK, as is shift to eastern Europe going on anyway, but with possible compensatory electric vehicle development in UK for EU market. 2/
Next of the large Japanese automotive manufacturers in UK - TS Tech. Makes car seats exclusively for Honda. Employs 740 people in Swindon. @MollyMEP had this to say about a meeting with TS Tech in 2018 3/
March 2019, after Honda announced Swindon closure, TS Tech tells the Nikkei that they are considering all possibilities for Brexit, including complete withdrawal from UK, or finding other customers. Plant in Hungary since 2013, sales operation in Germany for VW since 2016. 4/
As the only automotive rear lamp manufacturer in the UK, Koito see some positives to supply chain disruption with rest of EU for them. Also have a plant in Czech Rep, so either way, are covered. Employ around 660 people in Droitwich. 5/
Koito recently announced tie up with German LiDAR manufacturer Blickfeld to develop autonomous driving technology 6/ koito.co.jp/english/global…
TMD Friction was acquire by Nisshinbo in 2011. Employs around 700 people in Hartlepool making brake pads. Other plants in Spain, Romania, France, Germany. Consolidated UK production in 2018 closing plant in Scotland, with loss of 90 jobs. 7/ dailyrecord.co.uk/news/local-new…
Nifco employs around 650 people on Teesside making plastic automotive components. Also has manufacturing in Germany, Poland, Spain. CEO said Brexit would be "business suicide" in 2016, hoping for "successful Brexit"July 2018 8/ thenorthernecho.co.uk/business/16329…
Feb 2019, Nifco reacts Nissan announcement that X-Trail would no longer be made in UK by saying it would have been "one of the building blocks of its future growth strategy" 9/ gazettelive.co.uk/news/teesside-…
Nifco “All of this uncertainty is making 🇬🇧 an unattractive place to do business, we are experiencing this on a day to day basis. The automotive industry is a highly competitive market where...small losses are the difference between securing + losing significant contracts. 10/
NSK employs around 900 people in the UK with bearings + gears factories in Newark and Peterlee. UK is European HQ, employing 4000 in region, with factories in Poland + Germany. Dec 2018 said is assuming no deal Brexit, + stockpiling. Focus on expanding in CEE and Mid East. 11/
Ryobi is one of the very few larger Japanese automotive suppliers whose European production is only the UK - in Carrickfergus, Northern Ireland. Employs around 400 people, down from 491 in 2016/7. 12/ belfasttelegraph.co.uk/business/north…
UK-NSI (Nippon Seiki) also only had production in Europe in UK, in Redditch, employing over 400 people manufacturing Heads Up Display. Regional HQ in NL. Announced 2019 new Heads Up Display factory in Poland, to be operational by April 2020. 13/ nikkei.com/article/DGXMZO…
Faltec - body trim manufacturing in UK mainly supplies Nissan in UK, Spain, Russia for Qashqai, Leaf, Infiniti (which is going to cease production in Europe). Also Renault + BMW. Around 400 employees in UK = only operation in Europe. 14/
May 2019 Faltec announced would relocate plant to be nearer to Sunderland, investing £12m for next generation Qashqai order to be in production from 2020. Operating loss 2017 + 2018 15/ chroniclelive.co.uk/business/busin…
July 2019 Faltec announced it is investing £8m in its Kyushu factory to cope with increased demand from Nissan switching production of X-Trail to Japan from UK. 16/ newswitch.jp/p/18426
GS Yuasa - manufacturing car + other batteries - only production in Europe. Employing 350 people in Wales, 46% of sales to UK, 53% to rest of Europe. Has joint venture car starter battery factory in Turkey since 2015. 17/ incigsyuasa.com/en/history.aspx
As of 2020, GS Yuasa will have a 2nd plant in Europe - in Hungary, assembling lithium-ion batteries for electric vehicles. Considering producing cells there in future. 18/ gs-yuasa.com/en/newsrelease…
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More from @pernilleru see all

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Pernille Rudlin
@pernilleru
So next thread: Previous threads showed how 3 Japanese car brands, 3 big 🇯🇵automotive suppliers with production in UK all have alternative production sites in EU or Japan for a crash out or hard Brexit. Maybe onshoring supply to UK is an option, but no sign this is happening 1/
Other big suppliers: Toyoda Gosei (Toyota affiliate), 800 employees in UK, manufactures automotive parts in Rotherham + Wales - latter supplying Honda, also Nissan, JLR, BMW. Had government grants, was growing in 2015 2/ walesonline.co.uk/business/busin…
Since 2015, Toyoda Gosei employees in the Czech Republic more than doubled, increased by 1/3 in Germany + fell 29% in UK. Plan to 2025 is to improve profitability in Europe 2017-21, review division of roles between UK, Germany + Czech Rep, optimize production + cost structure. 3/
Read 8 tweets
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Pernille Rudlin
@pernilleru
I am not an automotive industry expert so not confident on what is technically doable or not as a contingency plan for a crash out Brexit, but I am pretty good on how Japanese companies think, so this is my sense of what is planned 1/
Japanese companies are very risk averse, by which I mean they want to minimise the risk to as close to zero as possible. So rather than work out how to deal with border disruption, I reckon they will just shift production away from UK to 🇪🇺 or 🇯🇵 immediately. 2/
Japanese companies are also very collaborative, so they will have been discussing back up plans with the whole supply chain and logistics companies for months, years even. 3/
Read 8 tweets
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Pernille Rudlin
@pernilleru
Following on from my threads on the past 3 yrs for the 3 biggest Japanese manufacturers in the UK + Brexit - Nissan, Honda & Toyota, here's a thread on the rest of Japanese automotive production businesses in the UK. Many of which are dependent on what Nissan/Honda/Toyota do 1/
As @nigel_driffield put it “It is not a question of what’s here already, it’s a question of what is not going to come here. In the next 12-18 months, Nissan, Honda + Toyota – will decide where they are going to make their new models in 2023-24." 2/ theguardian.com/business/2019/…
Some 70 per cent of the UK automotive industry is made up of smaller companies with ten or fewer staff, says Society of Motor Manufacturers and Traders 3/ wired.co.uk/article/uk-car…
Read 12 tweets

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Pete North
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Well it's like this see. Nothing is more dear to me than my insulin dependent nephew, so either I believe the EU notices to stakeholders or take the word of a pack of cousin marrying Toryboy mouthbreathers who six months ago didn't even know what a non tariff barrier was.
#Brexit
I read Charlie Elphicke's "Ready on day one" report. It was riddled with error, supposition and wildly misplaced optimism all based on a woefully inadequate understanding of how the single market works. I have zero faith these people will get it right.
The continuity of supplies depends very much on exports. If the UK loses vital contracts in pharmaceuticals and chemicals, then we could see producers halting production entirely. Just one loan default or missed payment is enough to shut down a production line.
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Simon Cox
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UK is heading for #Brexit In Name Only. And maybe the slow, spasmodic death of British nationalism. Thread.
I’ve never believed UK & EU would agree terms on a new - indefinite - relationship. There’s a chasm between EU’s position & UK rhetoric 2/
Conservative Party backed EU for 50 years. Most grandees, funders and MPs still believe UK would do very badly if it left SM. Financial Times & Treasury agree 3/
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Lesley Miller
@LesleyMillercyp
#Brexit 1
Cadbury moved factory 2 Poland 2011 with EU grant.
Ford Transit moved 2Turkey 2013 with EU grant.
Jaguar Land Rover recently agreed 2 build a new plant in Slovakia with EU grant, owned by Tata, same company who trashed our steel industry & emptied workers pension funds.
#Brexit 2
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Nicolai von Ondarza
@NvOndarza
Japanese Business Represenation have today released a statement on #Brexit that is quite remarkable.

Very direct calls to UK and EU-27 on transition, future relationship and third party agreements

jbce.org/brexit/jbce-ke…
On transition, they echo EU call for full single market and customs union participation of the UK.

Even more, they call for a long transition and clear extension mechanism.

Otherwise, Japanese companies would need to trigger 'do deal' contigency planning.
Equally blunt are their positions on the future relationship, incl calls for
- no tarriffs
- the UK to remain within a customs regime with the EU
- regulatory coherence
- UK participation in EU programmes

In short, please don't change anything that might rock the boat.
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