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Brexit is an idiotic mistake - calendar week 41 summary Watch

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    (Original post by CurlyBen)
    So... you're buying the parts in euros, and selling the cars in euros... what effect is a weak pound going to have? Or, to put it another way, any losses you incur by buying parts using a weak currency should be more than compensated for when you sell in the stronger currency. See my previous example. If you put $5,000 worth of parts into a car you sell for $10,000 the parts are half the value of the sale price, even if you've converted to and from sterling at some point.
    Why would you buy the parts in Euros? We're still talking about Ellesmere Port. From the point of PSA, there is no gain from selling the cars in the 'stronger currency', as it's their base operating currency. The cars were still more expensive to make in Britain due to the weak Pound, so profit on these cars is lower.

    (Original post by CurlyBen)
    Two sources for Ellesmere Port exporting about 80% of the vehicles it produces
    http://www.chesterchronicle.co.uk/ne...rates-13574737
    "With nearly 80% of Ellesmere Port vehicles currently exported out of the UK"
    https://www.theguardian.com/business...tle-after-2021
    "Ellesmere Port... then exports 80% of the cars"
    Super, this only confirms my point then that cars made (and not sold) in Britain are less profitable, and therefore a shift was axed. I am glad you wasted your time to find those articles though.

    (Original post by CurlyBen)
    I'm done with this. I strongly suspect that you're not as knowledgable as you think you are.
    Ditto. One cannot reason with people who don't understand basic logic.
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    (Original post by shawn_o1)
    OP only has the economic argument. It's never for certain what our economic situation would be if we stayed. Sure we might "grow" but do Mr and Mrs Ordinary, i.e. those with their £20k jobs feel any benefit whatsoever?
    Can you elaborate on the benefits Mr and Mrs Ordinary will see as a result of Brexit?
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    (Original post by shawn_o1)
    He will insult anyone and everyone. The EU is full of toxic individuals like him.
    Of course the irony is that he acts in very much the same way as those he holds in such low regard. Facts and logic appear to be just as optional to him as they do to those rabidly pro-Brexit! To give him credit, arguing that a weak currency is bad for exports is a novel theory...

    I'm not even strongly in favour of (nor opposed to) Brexit. I just hate seeing such unbalanced views spouted all the time.
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    (Original post by CurlyBen)
    Facts and logic appear to be just as optional to him as they do to those rabidly pro-Brexit!
    I post facts. Opinion is clearly marked as such.

    The Leave camp, on the other side, mainly relies on outright lies and disgusting populism. The fact that you liken the two shows how little you actually know about the debate and the rhetoric on both sides. And that you critizise my logic is rich, having been unable to grasp the simple concept and effects of making and selling a car with higher parts prices.

    (Original post by CurlyBen)
    To give him credit, arguing that a weak currency is bad for exports is a novel theory...
    Never said that. However, a weak currency doesn't help you much when you don't export all that much but are highly reliant on imports for raw materials and parts.

    Further reading for you:
    http://www.independent.ie/business/b...-36214756.html
    https://www.theguardian.com/business...-manufacturing
    http://www.independent.co.uk/news/bu...-a7725791.html

    The economic ignorance of engineers never ceases to amaze.
 
 
 
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