Massive investment is flowing into the UK car industry as manufacturers looks to switch to electric with their next generation of vehicles. Jaguar Land Rover, Vauxhall and BMW are all making long-term commitments to the UK. Meanwhile, consumer spending, foreign travel and real estate are all up too.
Friday 5 July 2019
Jaguar Land Rover is not only investing big in Britain it is transforming itself. The assembly line at Castle Bromwich is being retro-fitted to manufacture electronic vehicles. “The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” said chief executive Ralf Speth…
…The Jaguar announcement comes just a few days after car giant PSA Group announced plans to build the next generation of Vauxhall Astras at its Ellesmere plant. The new Astra range will also include an electric version. The ambitious move is remarkable considering the widespread concerns that PSA, which also owns Peugeot and Citroen, would downscale Vauxhall when it was acquired in 2017…
…And German car giant BMW has said it is “committed” to staying in the UK and is preparing heavily for No Deal Brexit. “We are currently going to great lengths to prepare our production network for the impact of Brexit,” stated BMW directors in accounts filed recently. The UK is BMW’s fourth-largest market.
Brilliant news for Brexit Britain as Jaguar Land Rover commits to building its latest generation of electric cars in the UK. We're thriving as we head for independence and Project Fear is proven wrong yet again!
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Retail data for the first quarter of 2019 shows that UK consumers are not heeding exaggerated doomsday warnings of No Deal Brexit. High street spending grew 0.7% in the three months to April, the highest in two years, according to EY Item Club, and is expected to pick to 1.7% in 2020, a result of near full employment and rising wages. Shoppers are “significantly less affected in their spending decisions than businesses by uncertainties over the economy and Brexit”, said chief economic adviser, Howard Archer.
Ryanair recorded an 8% increase in passenger numbers over the twelve months ending in June of this year. 13.6m passengers used the budget carrier, spread across 78,000 flights. The hike amounts to 13% once Ryanair’s recent acquisition of Laudamotion is taken into consideration. Controversial CEO, Michael O’Leary has been heavily critical of Brexit, although he wasn’t always such a Remainer, warning in 2011 to “get the hell of out of Brussels”, maybe he’ll soon be returning to his senses…
…Ryanair’s increased passenger numbers is reflected throughout the market. A report by GlobalData has found overseas trips by British tourists will rise by 8m between 2018 and 2023. Brexit and Sterling’s lower value “has impacted the UK’s outbound tourism industry but the reality is not likely to be as bad as we might have been led to believe,” said analyst Laura Beaton.
Research by Springbox Properties has found demand for property has crept up by 1% across the UK despite reports of uncertainty causing widespread a plunge in buyer interest. “Slowly but surely we are seeing UK home buyers grow bored of Brexit and push on with a sale despite the fact that we as a nation are still staring into the political unknown,” said CEO Shepherd Ncube. This shouldn’t come as too much of a surprise. Mortgage approvals reached a two-year high in April, the driving factor: low unemployment and rising wages. Meanwhile, retirement and student accommodation are set to quadruple in size, reaching a combined value of almost a trillion pounds.
Scottish distiller Edrington is boasting a 9% rise in sales revenues in the year to March, just short of £700m. “The business has delivered strong international growth that reflects continuing consumer demand for our products, particularly in China, South East Asia and the USA, which is the world’s largest market for premium spirits,” said chief executive, Scott McCroskie. Edrington, which owns popular overseas brands like Macallan, exports a staggering 95% of its products.
And despite soaring summer temperatures, not everything’s so sunny on the continent…
A WTO Brexit without recourse to Article XXIV provisions under the GATT would wreak a “disastrous” toll on continental Europe, a study by a Belgian institution finds. The impact on Europe “is going to be a lot bigger” than previously thought, said the report’s author, Professor Hylke Vandenbussche. Ireland, France, Germany, Belgium, the Netherlands, Denmark and Portugal would all sustain sizeable hits at least, with Ireland expected to suffer a 4.4% knock to GDP. Not a pretty site, which is why Britain’s next leader must use the leverage at their disposal with real intent.