• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive

3

Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive

3

Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
CommentaryBrexit

You Can’t Blame Brexit Alone for the U.K. Auto Industry’s Woes

By
David Meyer
David Meyer
Down Arrow Button Icon
By
David Meyer
David Meyer
Down Arrow Button Icon
February 19, 2019, 6:47 AM ET

Tuesday morning’s confirmation that Honda will close a major U.K. plant appears to confirm that Brexit is hammering the auto industry before it even happens. However, the truth is more complicated than that—as Honda has been at pains to point out.

The Swindon plant, which currently employs 3,500 people and produces engines and the Civic sedan, is not the company’s only cutback. Honda will also stop producing the Civic in Turkey (though it will maintain operations in that country) as part of a wider global restructuring. “This is not a Brexit-related issue for us. This decision has been made on the basis of… global changes,” Honda’s senior vice president for Europe, Ian Howells, insisted.

That may be the case, but try telling it to Honda’s workers. As the Guardian reports, many of them see Brexit as the reason. “People voted for something without thinking of the consequences,” one told the paper.

It is not unreasonable for these soon-to-be-laid-off workers to place the blame for the factory closure at Brexit’s door. When Nissan decided not to make its X-Trail SUV in the U.K. as planned, it said Brexit uncertainty was making it harder to “plan for the future.” Jaguar Land Rover also cited Brexit as a factor when it announced 4,500 job cuts last month. The British auto industry as a whole has seen investment plummet in the last year and recently warned of “permanent devastation” in the increasingly likely event of a no-deal Brexit.

But in each of these cases, Brexit wasn’t the only factor by any means.

Nissan said its decision was partly due to reduced sales forecasts and the impact of new European emissions regulations—the X-Trail is a diesel-powered beast and Europe is turning its back on diesel, with plans for full-on phase-outs. Guess what Land Rovers also tend to run on. And guess what sort of engines Honda’s Swindon plant produces.

Also note that when the U.K.’s Society of Motor Manufacturers and Traders issued its “devastation” warning last month, it cited diesel uncertainty and Chinese and EU economic slowdowns as factors alongside the Brexit fiasco.

The global picture matters hugely here. AutoCar’s James Attwood made a good point in a Monday op-ed when he wrote: “You can’t ignore global trade, such as Donald Trump’s threat to impose huge tariffs on cars imported from Europe into the U.S.–such as the Civic. At the same time, the European Union and Japan recently agreed a trade deal that effectively removes tariffs on Japanese-built cars imported into Europe. That reduces Honda’s need to have a European manufacturing base.”

The auto industry as a whole is in a period of massive upheaval, as the fossil-fuel era sputters slowly towards its replacement by electrification, as consumer tastes change, and as trade disputes threaten to complicate matters even more. So what’s happening to the British auto scene is not all Brexit’s fault.

But to see the recent announcements as unrelated to Brexit would be utterly blinkered. The wider landscape provides too many other clues as to what’s going on—the departures of Dyson, Sony and Panasonic; the massive outflow of capital to the EU; the desperate warning from Airbus CEO Tom Enders about “the Brexiteers’ madness” threatening tens of thousands of jobs.

Brexit is only part of a bigger puzzle here, but it’s clear that for the British automotive industry, it could not come at a worse time.

About the Author
By David Meyer
LinkedIn icon
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

Richard McCathron is President & CEO, Hippo.
CommentaryInsurance
I’m leading a $100 million corporate turnaround. Here’s why I learned to distrust the growth mindset
By Richard McCathronMay 25, 2026
3 hours ago
David Bennahum
CommentaryMedia
I was one of the internet’s first influencers. AI just killed the whole category — and created something better
By David S. BennahumMay 24, 2026
1 day ago
employees
CommentarySuccession
Millions of business owners are about to retire. They should sell to their employees
By Matt Helmer and Maxwell JohnsonMay 23, 2026
2 days ago
Ashley Yetman
Commentarydisruption
Everyone is blaming AI for the death of ‘craft.’ Take a good look in the mirror
By Ashley YetmanMay 23, 2026
2 days ago
clay
CommentaryLoneliness
I’ve spent 25 years studying loneliness. AI is about to make it much worse
By Clay RoutledgeMay 23, 2026
2 days ago
ambrose
CommentaryRobotics
Former NASA Robotics Chief: America is building the wrong kind of robots — and China knows it
By Robert AmbroseMay 23, 2026
2 days ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
4 days ago
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
Lifestyle
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
1 day ago
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
Real Estate
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
By Sydney LakeMay 24, 2026
1 day ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
3 days ago
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
Success
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
By Nick LichtenbergMay 23, 2026
2 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
6 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.