In Great Britain, corporations see a need for action because of the numerous ambiguities surrounding Brexit. Thus, the automaker Ford, the airline Airbus and the electronics giant Sony increase the pressure on British politics in the Brexit chaos. The emigration is in the room or is already partially initiated. The British model company Dyson even moves to Asia.
In the case of a „no-deal“ Brexit companies would have to assume higher tariffs. Supply chains could also be disrupted and jobs at stake, say experts. Sony is therefore already moving its European headquarters from London to Amsterdam. Thus, the company could continue its business without impairment, if Britain leaves the European Union, a Sony spokeswoman said in the middle of the week. The processes in the European business of the Japanese electronics manufacturer remained unchanged.
Financial considerations are apparently also at Ford’s center. An unregulated withdrawal of Britain from the EU would cost the company, according to an insider, up to a billion dollars (880 million euros). According to internal calculations, at least $ 500 million (€ 440 million) is expected, a person familiar with the matter said Thursday. Sky News previously reported costs of $ 800 million.
Ford employees
AP
A Ford employee inspects an engine block in a British factory
Ford: Unregulated Brexit would be „catastrophic“
A slim majority of Britons had voted in June 2016 in a referendum for the EU exit. For many in the European Union that came as a surprise. Britain is expected to leave the EU on 29 March. However, the withdrawal agreement negotiated with Brussels had recently been overwhelmingly rejected by Parliament in London. This has sparked fears of a UK exit from the EU without agreement.
Brexit supporters in London
debate
How is Brexit going?
Ford did not want to comment on the financial implications of a tough Brexit. Finance chief Bob Shanks said, however, that preparations had been made for this case. Previously, Shanks had said he did not expect an unregulated Brexit. Should it come to that, but that would be „catastrophic“. In the United Kingdom Ford operates two engine plants and delivers there one of three cars manufactured in the factory in Cologne, Germany.
Airbus threatens factory closures
The aviation and defense group Airbus threatens the United Kingdom also in case of an unregulated EU exit with the closure of factories. It is a shame that more than two years after the referendum outcome, companies are still unable to properly plan for the future, said Airbus CEO Tom Enders.
„If there is a Brexit without agreements, we may have to make very damaging decisions for Britain at Airbus,“ Enders said in a video on Thursday. „Please do not listen to the madness of the Brexites, who claim that because we have huge factories here, we will not move and will always be here.“ There are countries in the world who would like to build wings for Airbus, said Enders.
Previous logistics could collapse
In the UK, Europe’s largest aerospace and defense group has concentrated almost all of its wing construction. Only the new Airbus A220 is independent of it. Therefore, the supply chains between the individual plants must function smoothly. In an unregulated Brexit with possibly weeks of traffic jams in the ports, Airbus has to fear for its logistics. Suppliers have to bring parts for the wings to the UK, the finished wings then have to go to the plants in France, Germany, China and the USA.
„With the knowledge of today you would certainly plan something different,“ says the Airbus Group. Airbus employs about 14,000 people at 25 locations in the UK, according to earlier data. Around 110,000 jobs depend on its UK supply chain. If Airbus wanted to relocate its business to another country, that would be a big hassle.
James Dyson
APA / AFP / Christophe Archambault
Also the company of Brexit-Befdrworter James Dyson turns its back on the UK
Brexit supporter Dyson goes to Singapore
A figurehead of the British economy, the vacuum cleaner maker Dyson, is also turning its back on Britain. The company announced the transfer of its headquarters to Singapore. Company founder James Dyson promptly received a storm of criticism for the move, as he is considered a fervent Brexit advocate. Officially, however, the relocation was justified by the growing importance of the Asian business.
Dyson was one of the few business leaders to speak out in favor of Brexit ahead of the EU exit referendum in June 2016. Above all, he criticized what he considered excessive EU regulations. At the end of 2017, he called on the government in London to leave the EU without an agreement with Brussels. After Brexit, the economy should be supported with lower corporate taxes and laxer labor laws, he said in a BBC interview.
BBC is also considering its leg in the EU
Meanwhile, the BBC is considering opening a new EU headquarters on the continent to continue sending EU-wide, the Guardian said Thursday. As the Belgian Prime Minister Louis Michel said in Davos, there are discussions with BBC boss Tony Hall, the EU headquarters in Belgium to settle.
According to insiders, however, there are also talks with the Netherlands and Ireland, the „Guardian“ continues. According to the newspaper, the BBC needs an EU-based license for its international channels if it wants to continue broadcasting in the rest of Europe after leaving the country. According to Michel, Belgium is currently being shortlisted for settling in the EU among some companies and groups that have their headquarters in the UK.
British government campaigns for investment
Against the background of the group’s emigration, the British government emphasized its openness to investors. „Britain is open to business and remains an attractive target for foreign direct investment,“ said International Trade Minister Liam Fox on Wednesday at news agency AFP at the World Economic Forum in Davos.
Fox reacted calmly to recent announcements. Instead, the minister referred to figures from the Deloitte business consultancy, according to which, since the Brexit vote in 2016, Britain has attracted more foreign investment than Germany and France combined. Even at a time of „uncertainty surrounding Brexit,“ the kingdom remains attractive to investors, Fox said. He was also optimistic that he would soon be able to sign several agreements with trading partners outside the EU.
Unemployment dropped
The British labor market was in very good shape despite the Brexit chaos. The unemployment rate fell in the three months to November from 4.1 to 4.0 percent, as the statistics office ONS announced on Tuesday in London. This set a 43-year low. The rate was last lower in 1975. Analysts had expected a constant quota. At the same time, wage increases for employees – including bonus payments – were as strong at 3.4 percent as they had been since mid-2008.
