Tom Enders, the Airbus CEO, has branded the uncertainty surrounding Brexit a ‘disgrace’ and warned that a no-deal scenario could see the company move its production from the UK.
In a blunt three-minute address to camera, Enders said that Airbus is not reliant on the UK and that in the long term the company would be likely to redirect investment away from the country if there is a disorderly Brexit.
“It is a disgrace that more than two years after the result of the 2016 referendum, businesses are still unable to plan properly for the future,” said Enders.
“If there is a no-deal Brexit, we at Airbus will have to make potentially very harmful decisions for the UK, which would be ironic, as back in the mid-1990s it was UK industry that were the architects and creators of European aerospace integration.”
“Please don’t listen to the Brexiteers’ madness which asserts that, because we have huge plants here, we will not move and we will always be here. They are wrong. Of course it is not possible to pick up and move our large UK factories to other parts of the world immediately, however, aerospace is a long-term business and we could be forced to redirect future investments in the event of a no-deal Brexit. And make no mistake, there are plenty of countries out there who would love to build the wings for Airbus aircraft.”
According to Enders, Airbus employs more than 14,000 people directly in the UK and supports an additional 110,000 jobs via the supply chain. Its UK operations generate around £6bn of revenue each year.
“The global market for aviation is growing at five per cent each year, but we are not dependent on the UK for our future,” the Airbus CEO continued. “Airbus will survive and thrive whatever the outcome. The question is, does the UK wish to be a part of that future success?”
No no no. We are the best in the world, you need us more than we need you. Don’t you dare bully us into thinking we might not be the best…blah blah blah. …….Boeing will rescue us!!! (please?) 🙂
We may leave at the end of March without a deal – but does anyone really believe that a deal will not be agreed within a year (probably sooner) – it will be in everyone’s interests. Surely any disruption would peak in April and after that will only improve.
He is misguided and has ties to a blatant anti brexit campaigner David Cameron so what do you expect, I agree with the comments above nobody knows what will happen until it happens.
This highlights a hugh potential problem . Why will companies stay in the EU with EU level tax when their main customers are in the East and production cheaper . Dyson is moving why not Airbus et al. As the CEO states ” there are plenty of Countries who can build the wings” same applies to the rest of the plane. The next referendum if some MPs have their way will have two boxes 1 We stay. 2 We do not leave . ie Heads I win Tails you loose
The comments are fierce. Justifiably so in the face of an ongoing demonstration of industrial strength incompetence and posturing by all parties. The whole charade has laid bare fault lines in relation to governance which need to be addressed. For commerce and industry the frustration arising from all of this positioning and politicking is immense. The electorate will take its revenge in due course.
The main point is that after two and a half years, i.e. half a Government period, the Government, who are just as split as everyone else has been unable to Make it Happen. Put it back to The People in a democratic Referendum. After all, what’s un-democratic about asking the question again now that we know just how convoluted and difficult the unravelling of 40 years membership turned out. Why not be inside the tent and manouvre things better towards the UK? Trade deals with ‘the rest of the World’ seem rather more unlikely every day and commercially there is no reason at all why an International company shouldn’t decide to make their products elsewhere.
I think the CEO of Airbus might have some idea about what will happen to the future of Airbus in the UK.
Well said Andrew Wade. Alas, Phil, I doubt the electorate will have its revenge as the Tories are already spooling up the story that EU is the architect of all the problems we face as a country…nothing to do with our own incompetent governments approach.
That applies to Govenment as a species, not just the one currently ‘in power’.
Airbus like other large companies with production plants all through Europe take the position that a no deal is fault of the UK government. It takes two to make a deal and to compromise. Where is the EU with a compromise over the backstop? Without the backstop, most MP’s would surely accept the deal on the table, unless you are with Labour who want to go against the majority of the electorate and be part of EU’s Customs Union, but without a voice. A free trade deal with the EU can be negotiated within the timeframe of the deal, similar to Canadas trade deal. Surely then all would be happy. Free trade with Europe. Airbus and others allowed to carry on with business as usual. Or is this too simplistic or do they have other personal financial interests at stake?
Any time soon the euro will drop and the unelected bureacrats in Brussels will realise that their gamble will fail and their misguided “friends in the UK” are making it worse by opposing “the deal” when there is one to be done.
The Irish “border problem” is a deliberate scam, when they know that neither the UK nor Irish Republic want or intend there to be a hard one. Ireland will loose more trade with the UK, simple solution, extend the present UK/Ireland travel area to include trade and Ireland leaves the EU as well. The Irish government refused to accept an earlier leave move in Ireland, now is the time to leave with honour.
Blimey, talk about magical thinking…
If the UK leaves without a deal, EU (and WTO) rules dictate that there has to be a hard border. Very simple. It is nothing to do with desiring one. It will simply be a consequence of the UK’s actions.
Secondly, there has never been a ‘leave’ vote in Ireland. The electorate rejected the first version of the Lisbon Treaty, amendments were made, and it was passed by a huge majority the 2nd time around. Democracy in action. Polls in Ireland over the past year have consistently placed support for continued membership of the EU at between 85 and 90 per cent.
Time has almost run out.
WAKE UP UK ENGINEERING COMMUNITY.
No deal is a disaster for manufacturing and hundreds of thousands of jobs directly and indirectly. Simple fact manufacturing is 10per cent of UK economy and worth 45 percent of all UK exports. Loss of manufacturing directly impacts tzx receipts available for our schools hospitals etc. We already know what Brexiteers think about business. It’s clear they will lie their way to no deal. Write to your MP to stop this madness.
I agree with one thing he said…
“It is a disgrace that more than two years after the result of the 2016 referendum, businesses are still unable to plan properly for the future,”
The rest of the statement is scaremongering.
Airbus haven’t invested one penny in the UK, so why should they be allowed to take UK businesses and move them to France?
The Airbus work in the UK came form British Aerospace, when it was owned by the UK government. So the UK tax payer paid for the development of the A320. That UK investment was later incorporated into Airbus. So why should the French get a denationalized UK company, just because they treated us so badly that we had to leave the EU?
The airbus comments appear to be positioning for both France and Germany to move work from the UK and blame Bretix. Both countries have invested heavily in the UK buying up key companies while protecting their own with government key share holdings. Without a free trade agreement ( original entry by the UK was based on joining a common market) then we will see protectionism on all sides which inevitably will see UK loose out in key areas already owned by European government’s.
The Irish Border issue is a genuine problem.
The backstop agreement is unacceptable to our parliament for various reasons however the alternatives are not so appealing either.
The fundamental problem with Brexit is that it is not congruent with the Good Friday Agreement.
In order to facilitate a clean break we either have to have a hard border in which case the UK will break the GFA or we have to remain in the customs union (brexit in name only/ permanent vassalage).
Brexiteers somewhat glossed over the whole issue of the Irish border during their campaign arguing that some sort of technical third option was possible. This was to be a sort of soft hard border with pretty flowers and mood lighting which wouldn’t be even in the slightest bit shooty- where people and livestock could come and go as they pleased just as before. This third option is pure fantasy say the EU. They may well be right.
Basically if Ireland needs to have a soft border then the North has to stay in the customs union.
The other option is to renegotiate the GFA and we set up a bilateral agreement with Ireland in the hope that the EU will agree it too. This is a long shot. More so given that negotiating the first GFA was a near miracle and its signing akin to shutting the gates of hell. Consequently there is understandably some degree of reticence about opening the Pandora’s box of negotiating a GFA mark 2.
If we are to have a hard Brexit the cause of it will be the Irish Border issue. The backstop looks pretty awful but the other options are just as bad.
Project fear rules, but all their support claims are generalisations. BAE export 70% of their production outside of the EU and the concern is mainly related to JIT, which is a business convenience and not a necessity. The simple fact is that the UK’s manufacturing balance of payments with the EU has deteriorated steadily to over £ 60b/ year, which in effect means transferring manufacture to the EU (and the UK’s manufacturing industry has declined massively over this period).
Time is running out for an agreed soft-brexit, it was probably never possible in hind-sight given the approach of our MPs. The question now is will the UK escape or be tied-in by the powerful anti-democrats. At least most engineers have yellow jackets, even if they’re unlikely to protest!