Brexit a factor in accelerating Japanese exodus from UK: Analysts
TOKYO: Panasonic, Sony, Nissan and Honda: A recent exodus of Japanese companies from Britain is not solely down to Brexit, analysts said, but it has in many cases accelerated the decision to leave.
Yesterday, Honda was the latest Japanese company to send shockwaves by announcing the end of its plant in Swindon, where around 3,500 workers have been producing the Civic for more than 24 years.
Officials rushed to divert blame from Brexit, with local MP Justin Tomlinson saying the decision was down to "global trends" and pointing out Honda was transferring all European production back to Japan.
Said Tokai Tokyo Research Institute analyst Seiji Sugiura: "Honda seems to have been preparing for this for a long time. Then Brexit happened, which might have pushed the company to make the decision now."
Mr Satoru Takada, an auto analyst at TIW, a research firm based in Tokyo, also noted that Honda had been debating what to do with the Swindon plant for some time.
"It has struggled in recent years. Then came Brexit," said Mr Takada. "The change in the business environment pushed the company to make the decision now."
Honda's decision came hot on the heels of Nissan axing production at its Sunderland plant in England.
Electronics giants Sony and Panasonic have also announced shifts from Britain.
Major Japanese banks are pulling out of London, and nuclear company Hitachi last month announced a freeze in a major power plant in Wales.
Many of these companies said Brexit was not the only factor in their decision but it played a part.
"What are the reasons for this pullout? One of them is distrust in Britain itself - its economy, politics and society are in disarray," said researcher Yosuku Tsuchida at Mitsubishi UFJ Research and Consulting.
"It's a country risk." - AFP
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