On Sunday, February 3rd, 2019, Nissan announced their plan to shift production of the next generation SUV models targeted to European market from Sunderland, UK to a domestic factory in Japan (Kyushu plant). 
Such other major automotive brands with manufacturing facilities in UK as BMW, Jaguar and Land Rover have already made their decision of shutting down their UK plants. Pharmaceutical manufacturers are also preparing for the unexpected, and have increased their inventory stocks as well. Barclays UK also announced that they transfer €190 billion worth of customer assets to Ireland.  P & O, the company operating cross-channel ferries traveling between France and England has made a drastic decision as well to reflag all of their vessels from UK to Cyprus.  Furthermore, Sony has established a new company in Netherlands and unveiled their plan to transfer the European headquarter operations to the new company effective March 29th, 2019.

Most companies, while preparing themselves for the “worst-case scenario”, had primarily been adjusting for Brexit with the withdrawal agreement where a 2 year transition period was offered.  In the midst of increasing risk of non-deal Brexit as a result of the peaked confrontation between the government and the hard-liners, the British parliament finally rejected the agreement once concluded between the British government and EU on January 15th, resulting in companies to all take the shift to the “worst-case” scenario they had been preparing for of a non-deal Brexit.  Those Brexiters once extremely pleased about the independence have now started to realize the “real impact” of the leave from EU since companies do not change their business plans easily once they have started to carry them out.  The key is whether or not great trends could be fostered and all possible efforts are made within the Britain to seriously avoid the turmoil.

The British parliament, being tough only on their own turf, rejects the government plan on the one hand, but cannot pass the non-confidence on Prime Minister May who has limited leadership ability to control over the parliament, on the other hand.  Under the circumstance with no time to waste, the parliament finally agreed to the amended bill based on which Prime Minister May will go into the negotiation with the EU on February 7th. The only safe plan may be, however, “the postponement of Brexit”, due to the unchanged attitude of EU not to accept renegotiation.

Last year, when the Britain was facing the looming deadline for negotiation, I quoted the following Shakespeare’s words in this series of articles to describe the situation then, “There is nothing either good or bad, but thinking makes it so”.  Now I would use other Shakespeare’s words, “I have to embrace something which can’t be avoided”.

Takashi Mizukoshi, the President