Brexit and How Japanese Companies Are Navigating Its Uncertainties

It is still uncertain when the United Kingdom will leave the EU. “Brexit Day” was meant to be March 29, but UK Prime Minister Theresa May has requested an extension of three months in which she will try to get the UK parliament to approve the exit terms she has negotiated with Brussels, but MPs have twice rejected.  Meanwhile, a “no-deal” Brexit, which would mean there are no agreements in place for the UK’s relationship with the EU, remains a possibility. While the latter would bring immediate clarity of a sort, the prolonged uncertainty has been agonizing for businesses affected by the political process. Japanese companies that have invested in Britain offer an interesting example of how international business is coping with the political tumult roiling the UK economy over Brexit. The most visible part of that is accounted for by Japan’s “big three” carmakers — Honda, Nissan, and Toyota — which employ around 60,000 UK workers in auto production and sales Japanese firms are not rushing to exit the UK. Instead, they are making limited, defensive moves while they wait for clarity to emerge from the chaos.