6 ms·

> On top of this, comes the inescapable elephant that is Brexit. This may only be one of the factors affecting Wrightbus, but it is arguably the crippling final

> On top of this, comes the inescapable elephant that is Brexit. This may only be one of the factors affecting Wrightbus, but it is arguably the crippling final blow. Wrightbus is a Northern Ireland based supplier, dependent on parts and orders from the EU and beyond, a strong UK economy, and a stable period of national and local government. All of those pillars have been cracked by Brexit. None of those things have changed, or been changed by Brexit in this timeframe.

mytailorisrich 7y ago
Sterling has fallen because of Brexit. This increases the cost of importing parts, etc. from foreign suppliers. Brexit was also expected to have already occurred so customers may have taken a cautious approach regarding orders that may have spanned Brexit occurring. I guess there is also the issue of maintenance and sourcing parts from them during the life-time of the busses. It is not unreasonable to accept that Brexit may have caused customers to conclude that it was safer to pick other suppliers for the time being.
- earnubs 7y ago
  Currencies rise and fall, the cost of Al (in the UK) was more expensive in 2010 than it is now. (And if you're a buyer outside the UK the fall of sterling would be a good thing, no?) I'm having a hard time getting past the relative difference between the losses and the donations to Green Pastures, to blaming Brexit.
michaelt 7y ago
If you’re an investor making a 5 year investment, or a foreign customer making an order for delivery over a year and spare parts for years thereafter, the levels of tariffs are pretty important, no?
- earnubs 7y ago
  If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business?
  - cjrp 7y ago
    On that purchase, nothing. On future buses (when you expand your fleet), or on spare parts for routine maintenance: unknown tariff. Business don't like unknowns.
  - onion2k 7y ago
    If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? None. There would be no tariff at the moment. Yay! But... if you buy 1000 buses you don't pay for them right now unless you're a crazy person. You pay for them in the future, and there might be a tariff then. And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business? If the UK leaves without a deal then the WTO tariffs are applied instead of the zero-rated EU trade zone agreements that are in place right now. For 'light commercial vehicles' that tariff varies from 10-22%. In other words, a UK bus manufacturer will never sell a bus in the EU ever again as long as the WTO rules are in place. The good thing is that the withdrawal agreement or No Deal brexit is only the first step on the long and arduous journey that is Brexit. We would work to negotiate a new trade deal either with the EU or with each individual member. So, hopefully, that tariff wouldn't apply for ever. Eventually we'd be able to sell buses in the EU again, assuming the manufacturers manage to survive that long. It's probably that they'd move their businesses to the EU before that though, and employ EU citizens instead and pay tax to the new country the business resides in. It's not good for the UK.
  - Mindwipe 7y ago
    > And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business? The UK wouldn't impose the tariff, the EU would do based on reacting to a UK imposition on their businesses. And I think everyone in Europe rightly believes the UK government couldn't find it's own actual self interest with both hands, so there's no reason to assume they will act rationally.
  - IshKebab 7y ago
    > If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? Nobody knows! That's the problem. WTO tariff on cars is apparently 10% but I didn't manage to find out what it is for buses.

mytailorisrich 7y ago

Sterling has fallen because of Brexit. This increases the cost of importing parts, etc. from foreign suppliers. Brexit was also expected to have already occurred so customers may have taken a cautious approach regarding orders that may have spanned Brexit occurring. I guess there is also the issue of maintenance and sourcing parts from them during the life-time of the busses. It is not unreasonable to accept that Brexit may have caused customers to conclude that it was safer to pick other suppliers for the time being.

earnubs 7y ago
Currencies rise and fall, the cost of Al (in the UK) was more expensive in 2010 than it is now. (And if you're a buyer outside the UK the fall of sterling would be a good thing, no?) I'm having a hard time getting past the relative difference between the losses and the donations to Green Pastures, to blaming Brexit.

michaelt 7y ago

If you’re an investor making a 5 year investment, or a foreign customer making an order for delivery over a year and spare parts for years thereafter, the levels of tariffs are pretty important, no?

earnubs 7y ago
If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business?
- cjrp 7y ago
  On that purchase, nothing. On future buses (when you expand your fleet), or on spare parts for routine maintenance: unknown tariff. Business don't like unknowns.
- onion2k 7y ago
  If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? None. There would be no tariff at the moment. Yay! But... if you buy 1000 buses you don't pay for them right now unless you're a crazy person. You pay for them in the future, and there might be a tariff then. And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business? If the UK leaves without a deal then the WTO tariffs are applied instead of the zero-rated EU trade zone agreements that are in place right now. For 'light commercial vehicles' that tariff varies from 10-22%. In other words, a UK bus manufacturer will never sell a bus in the EU ever again as long as the WTO rules are in place. The good thing is that the withdrawal agreement or No Deal brexit is only the first step on the long and arduous journey that is Brexit. We would work to negotiate a new trade deal either with the EU or with each individual member. So, hopefully, that tariff wouldn't apply for ever. Eventually we'd be able to sell buses in the EU again, assuming the manufacturers manage to survive that long. It's probably that they'd move their businesses to the EU before that though, and employ EU citizens instead and pay tax to the new country the business resides in. It's not good for the UK.
- Mindwipe 7y ago
  > And if we're post Brexit, what tariff is the UK going to impose on a UK manufacturer that kills it's business? The UK wouldn't impose the tariff, the EU would do based on reacting to a UK imposition on their businesses. And I think everyone in Europe rightly believes the UK government couldn't find it's own actual self interest with both hands, so there's no reason to assume they will act rationally.
- IshKebab 7y ago
  > If you make a deal to buy a bus (or 1000) today, what tariff would you be incurring as a result of Brexit? Nobody knows! That's the problem. WTO tariff on cars is apparently 10% but I didn't manage to find out what it is for buses.