Tuesday, July 5, 2016

GKN Technology meets Brexit

GKN Technology is a British company that makes the wings for Airbus.   The UK government pulled out of the Airbus consortium some years ago, but GKN Technology retained their Airbus business somehow.  The Airbuses are assembled in Europe (Germany or France, cannot remember which). Which means those British built wings get shipped across the Channel.  When Britain does the paperwork to pull out of the EU, presumably those wings have to pay the EU tariff when they land on the continent. 
  And it's not like GKN Technology can find another customer for its wings.  Those wings are Airbus wings, and won't fit another airplane.  If Brexit means Airbus has to pay a serious tariff on the wings, they will surely investigate alternate suppliers located on the continent.  And with EU unemployment running at 10%, any EU supplier will have no trouble staffing up to handle the extra business.
   Be afraid, be very afraid. 
  

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