** The Brexit Thread ** - 'Brexit Means Brexit'

[Psamathe]

Very few of us will be able to afford an imported foreign car. However, since we would have taken back control, we could set our own cheaper standards for cars (e.g. no expensive catalytic converters fitted since they would no longer be required) and manufacture them cheaply using low wage UK labour. Think something along the lines of a Trabant.

Boris Johnson will extoll the virtues of the new UK designed and built vehicles and tell us all that they are the People's Car.

Under WTO rules the import tariff on cars is 10%. SOme of this would be absorbed by manufacturers and some by the retailers. I'd be surprised if prices went up by as much as 5%.

Dos it depend on when you are recording the 5% from. Many economists expect sterling to fall and inflation to rise so there may be additional pressures on prices making it harder for the supply chain to absorb costs. Also, since voting to leave the exchange rate and inflation increases have not been significantly absorbed by the manufacturer/retailers

The starting price of some new car models has risen by over 20% since the decision to leave the EU.

So are they going to start absorbing price rises now? (I don't follow car pricing or car manufacturing so I'm not suggesting anything, just raising the possibility).

Ian

[pete75]

Very few of us will be able to afford an imported foreign car. However, since we would have taken back control, we could set our own cheaper standards for cars (e.g. no expensive catalytic converters fitted since they would no longer be required) and manufacture them cheaply using low wage UK labour. Think something along the lines of a Trabant.

Boris Johnson will extoll the virtues of the new UK designed and built vehicles and tell us all that they are the People's Car.

Under WTO rules the import tariff on cars is 10%. SOme of this would be absorbed by manufacturers and some by the retailers. I'd be surprised if prices went up by as much as 5%.

The average cost of a car would increase by £2400, even a small increase could not be absorbed by retailers as their margins have already been squeezed, the supply chains are complex with tariffs being levied at every cross border movement, then the finished car will attract an additional tariff.

Plus the WTO is in a mess.

FYI, vehicles are already being stockpiled at ports like Immingham in North Lincolnshire- Kias (Slovakia), BMWs (Germany), Volvos (Sweden). Circa 20.000 cars (cars) on average stored at Immingham.

John.

N.B sell fewer cars and invest in rail freight and public transport.

Well if there's that many cars here and already imported tariff free under EU regs prices won't go up for a while will they?
There's also many stored in a field near Sandtoft and another lot just outside Corby Northants. I think those sites belong to a company called Gefco who have other car storage sites doted around the country.

[roubaixtuesday]

Very few of us will be able to afford an imported foreign car. However, since we would have taken back control, we could set our own cheaper standards for cars (e.g. no expensive catalytic converters fitted since they would no longer be required) and manufacture them cheaply using low wage UK labour. Think something along the lines of a Trabant.

Boris Johnson will extoll the virtues of the new UK designed and built vehicles and tell us all that they are the People's Car.

Under WTO rules the import tariff on cars is 10%. SOme of this would be absorbed by manufacturers and some by the retailers. I'd be surprised if prices went up by as much as 5%.

I think it's very, very hard to predict.

A scenario of a crash in demand could easily actually reduce prices in the short term, for instance.

But the long term impact seems clear: prices will rise, and UK manufacturing will fall.

[Vorpal]

Retailers and manufacturers cannot absorb prices long term, though they may be able to do so short term.

[Bonefishblues]

Sajid Javid on R4 this morning went further than I've so far heard in saying unequivocally we will leave on 31/10 despite the legislation in place.

This is otherworldly stuff.

[roubaixtuesday]

Sajid Javid on R4 this morning went further than I've so far heard in saying unequivocally we will leave on 31/10 despite the legislation in place.

This is otherworldly stuff.

Justifying breaking the law, overruling the elected parliament and tacitly encouraging violence by your supporters to silence the opposition are, alas, very much of this world.

We just don't like admitting that they are happening here, preferring to believe that only dastardly foreigners engage in such chicanery.

[Bonefishblues]

That wasn't the point I was making, lest your quoting my post meant anyone might think that.

[Psamathe]

Sajid Javid on R4 this morning went further than I've so far heard in saying unequivocally we will leave on 31/10 despite the legislation in place.

This is otherworldly stuff.

Justifying breaking the law, overruling the elected parliament and tacitly encouraging violence by your supporters to silence the opposition are, alas, very much of this world.

We just don't like admitting that they are happening here, preferring to believe that only dastardly foreigners engage in such chicanery.

I wonder how much this impression the Brexit-eer MPs are spreading about there being a loophole is just a way to sow uncertainty (something Boris seems to thrive on).

Those suggesting the loophole seem mainly untrained in law (and do we trust Cox's "advice" any more). I have the impression those in Westminster trying to prevent a No-Deal exit are consulting with experts and the experts I've seen interviewed on TV seem to think there isn't but it does not matter if there is a technical loophole as they say that the clear intent of the law is what will matter to the courts. I'm just repeating what others have said as I have no legal expertise.

My personal opinion is that Boris will have to work a lot harder to whip up the riots and violence he's been trying to kick-off so he can use the Civil whatever legislation to override the Benn Act. I can't see it happing as things stand now (only Cummings is in there so who knows ...).

Ian

[roubaixtuesday]

That wasn't the point I was making, lest your quoting my post meant anyone might think that.

Sorry, I wasn't trying to ascribe those views to you personally, more to reflect on the dangers we are under and how as a nation, we are in denial of the position we're in.

[661-Pete]

Those suggesting the loophole seem mainly untrained in law (and do we trust Cox's "advice" any more).

"Loophole", eh? I wonder if they've engaged the services of that most infamous purveyor of "loopholes", one Mr Freeman? A creature who presumably does claim to be "trained in law" - although what species of Law he's been 'trained' in I've no idea (North Korean Law maybe?)...

[Hobbs1951]

Retailers and manufacturers cannot absorb prices long term, though they may be able to do so short term.

Retailers are unable to absorb cost increases, they've suffered much margin erosion in recent years, automotive sector economics are very complex, dealers are at the mercy (largely) of both the market and distributors/manufacturers (there is a deliberate distinction).

The majority of UK based auto manufacturers have already begun, many have completed, their strategic reviews.

The future is not that heard to predict: either worst case or best case scenarios - neither are good.

John.

[Bonefishblues]

That wasn't the point I was making, lest your quoting my post meant anyone might think that.

Sorry, I wasn't trying to ascribe those views to you personally, more to reflect on the dangers we are under and how as a nation, we are in denial of the position we're in.

No worries. We're in violent agreement!

[Bonefishblues]

Those suggesting the loophole seem mainly untrained in law (and do we trust Cox's "advice" any more).

"Loophole", eh? I wonder if they've engaged the services of that most infamous purveyor of "loopholes", one Mr Freeman? A creature who presumably does claim to be "trained in law" - although what species of Law he's been 'trained' in I've no idea (North Korean Law maybe?)...

He should stand aside and let justice be done I guess

... and those criminal lawyers who defend wrong 'uns like Christopher Jefferies.

Anyhow, segue over.

[661-Pete]

... and those criminal lawyers who defend wrong 'uns like Christopher Jefferies.

I believe Christopher Jefferies was exonerated before even being charged with any offence - so presumably he didn't need the services of a criminal lawyer. He did engage a lawyer to represent him in his subsequent action against the Press, though.

[Bonefishblues]

I know. I thought I'd post one that was a particularly good exemplar of the need for due process, but happy to have a truffle around for criminal cases which did go to court if you would like?