Shares of global automotive companies fell due to the results of the referendum on the UK’s exit from the European Union after the victory of Vr.
Current Tokyo bond trading, shares of Toyota, Nissan and Honda (company description) fell 7%. These Japanese companies produce around 800,000 vehicles a year in their UK factories.
Shares in Indian giant Tata, which owns the Daguar Land Rover, rose to a stake in Mymbay by almost 12 percent.
British Prime Minister David Cameron has resigned and campaigned to warn that leaving the EU would result in at least 14,000 jobs being cut in the British auto industry.
BMW, whose subsidiaries MINI and Rolls-Royce make cars in the UK, warned of a «period of uncertainty» but said there would be no immediate change to operations on the island.
According to an official statement from BMW, many of the conditions envisaged for the European market will now have to be revised. «We cannot say what this means for our UK operations until future regulators and legislatures take action,» said the German premium carmaker.
British luxury sports car brand Aston Martin has called on the government to provide duty-free access to EU markets. “Now Aston Martin will focus on fulfilling its medium-term plan in the context of leaving the EU and market fluctuations that may occur during the transition period. The weaker pound should partly offset increased volatility,” said CEO Andy Palmer.
Executives from Asian car companies with British factories that export most of their products to the EU say they may slow down or put their investment in the UK on hold after Brexit. «We have no choice but to be more careful with our investment decisions, including the question of whether it makes sense to produce a new or significantly updated model in the UK,» said one Asian carmaker in the UK, speaking on condition of anonymity.
On Monday, Toyota (a brief history) warned its employees that a UK exit from the EU could result in a 10% increase in tolls for cars assembled in the UK. Toyota exports almost 90 percent of its vehicles to the UK, and three-quarters of them are sold in the EU.
For three decades, automotive giant Nissan has been producing an average of 475,000 vehicles a year in the country, most of them for export to the EU. The company’s factory is located in Sunderland in the north of England, where Brexit was voted on.
Capital Evercore ISI analyst warned that Brexit would hit new car sales in the UK and across Europe, as well as manufacturing.
Evercore expects UK car sales to fall 4.5% this year due to economic uncertainty, instead of forecasting a 3% increase before the UK leaves the EU. This will result in a 2.5% decline in production in Europe in 2017.