Re: This will have to hurt
Originally Posted by
Solasch
->
Move? Just close down sunderland, and keep spain and indonesia open.
Nissan only does that in case there is no deal with the EU, on the level playing field, which protects workers rights. Without that protection it will be easy to lay of british labour.
Well, here are a few more answers.
1. Nissan do not make the cars in the Sunderland plant in Spain so it would have to build a new factory in 6 months to do it and employ another 7000 people, plus supply chains etc etc. You still haven't answered how this can be done.
2. Spain has 25% corporation tax compared to the UK's 19% so making cars in Spain would be already a 6% extra hit on Nissan profits in Spain compared to here.
3. VAT is 1% higher in Spain than the UK so that's another 1% hit to Nissans taxes. Bearing in mind the UK will not be paying 5% EU vat from 31st December so this can be reduced, saving Nissan a further 5% in taxation.
4. Indonesia is not in the EU and already has a MFN 10% tariff applied to imports (or 6.5% in the case of Indonesia as it is a "preferred" country under the GSP rules).
5. Indonesia has a corporation tax rate 6% higher than the UK
6. The UK has better working rights than the EU - we have, for example, free health care for all employees, a minimum/living wage, more holidays, maternity and paternity pay, a contract for all employees that is legally binding including redundancy notices, we have sick pay etc etc etc
7. Tarrifs are passed on to the consumer anyway
So ....
How (and why) is Nissan moving to the EU before the end of the year. You still haven't answered my question.