Japanese companies remain wary in wake of Brexit delay vote

  • General Interest

Japanese companies remain wary in wake of Brexit delay vote

Japanese companies remain vigilant after the U.K. Parliament on Thursday voted to extend the March 29 deadline for the country’s exit from the European Union amid lingering uncertainty on the issue.

It is not clear how long Brexit will be put off or whether the EU will approve an extension.

 

The automobile industry would likely suffer a major impact from a no-deal Brexit because of its extensive supply chains.

Last month, Nissan Motor Co. said it would cancel a production plan for a model at a plant in Britain.

Toyota Motor Corp. is examining options, including a review of its investments in Britain that may involve termination of production in the country.

Japanese firms are expected to implement measures devised in preparation for Brexit this month as planned.

Honda Motor Co. plans a six-day production halt in April as it braces for disruptions to its procurement of parts.

“We cannot change parts procurement plans or personnel deployment easily,” a Honda official said.

Sony Corp. will stick to its plan to relocate its registered European headquarters from Britain to the Netherlands by the end of this month.

Some companies are undecided about what to do in this uncertain situation, including Sharp Corp. and Panasonic Corp.

Hitachi Ltd., which makes train cars in Britain, procures 30 percent of the parts from outside the country. It is closely watching the situation and assessing the long-term impact of a possible no-deal Brexit.

On Friday, the Japanese government held a meeting on Brexit that brought together officials from related agencies at the Prime Minister’s Office.

Deputy Chief Cabinet Secretary Yasutoshi Nishimura, chair of the meeting, instructed the officials to collect further information.

Meanwhile, the government said its framework with the EU for smooth mutual transfers of personal information between businesses, which entered into effect in January, will remain effective after Brexit, including data exchanges between Japanese and British companies.

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Publication Date
Sat, 03/16/2019 - 00:00