The concerns expressed by Nissan over its future investment in the UK are significant as automotive has been the UK’s most successful manufacturing sector for attracting FDI in the last 5 years.
|UK Manufacturing plant FDI 2011-2015|
|Machinery & Equipment||92|
|Plastic & rubber||59|
And Japan is one of the 3 major investment origin countries with 31 projects in the last 5 years, almost half of which were by Nissan, Honda and Toyota and the rest by their supply chain. Nissan was the largest source of projects with 7.
|UK Automotive 2011-15 Project origin country|
It does appear that the Japanese investment might be the most at risk:
- Much of the German investment is in UK established operations such as Bentley, Rolls Royce and Mini;
- Apart from Ford, much of the US investment is supplier led with at least some of this being tied to the UK market;
- The Indian projects are linked primarily to the Tata operation with Jaguar Land Rover
- The Japanese investors have clear alternatives – Toyota has made 6 plant investments in France in the last 5 years and Nissan has done the same in Catalunya in Spain so there are obvious alternatives.