While the UK and the EU are working on new joint trade agreements, the world's largest producers are preparing for any outcome of this divorce. London and Brussels must relegislate their trade relations, agree on duties and customs regimes that will continue to encourage mutually beneficial trade. New conditions will pose a dilemma for many businesses. Some manufacturers have already drafted a contingency plan. For example, Nissan is going to double down on the UK. If a hard Brexit leads to tariffs on car imports from the continent, the Japanese automaker intends to pull out of manufacturing in Spain and France and raise its profile in Britain. Notably, Nissan's Sunderland car plant is the largest in the UK. The company builds 440 thousand cars at Sunderland, exporting half of its production to the EU. Under the contingency plan, production of the Micra and X-Trail models would be moved to this plant. The scenario is simple, but of genius. The British authorities will definitely increase tariffs on imported cars. As a result, American and German vehicles are expected to go up in price significantly. This will make the Japanese automaker more competitive and allow Nissan to boost its share in the British market from 4% to 20%.
FX.co ★ Nissan to boost its UK market share
Nissan to boost its UK market share
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