Japan's top companies are losing patience with the United Kingdom as Brexit fast approaches.
Honda (HMC) became the latest to reduce its exposure to the British economy, announcing Tuesday that it will shutter its only manufacturing plant in the country by 2021, a move that is expected to result in the loss of at least 3,500 jobs.
The company denied any link with Brexit but auto industry experts said the uncertainty over future market access and the risk of tariffs must have played a part.
Honda's bombshell follows the decision by rival automaker Nissan (NSANF) to scrap plans to build a new SUV model in northern England. Electronics firms Sony (SNE) and Panasonic (PCRFF) have both said they will move their European legal bases out of the country because of Brexit.
Japanese executives are fed up after warning for years of the risks inherent in a rupture with Europe.
"Within Japan, every professional person I speak to is bemused by Brexit," said Paul Bacon, a professor at Tokyo's Waseda University who specializes in Japan's relations with Europe. "It is obvious here how economically damaging it will be, and also that it creates serious difficulties for Japanese industry."
Nissan is scrapping plans to build a new SUV model in northern England, citing Brexit as a major factor.
Britain outside EU 'makes no sense'
Japan Inc has poured billions into the UK economy. More than 1,000 Japanese companies do business in the country, supporting more than 140,000 jobs, according to the most recent Japanese government figures.
Many of them used the United Kingdom as a launchpad into Europe. But if the country exits the EU's unified market, "it makes no sense for Japanese industries to base themselves in the UK," Bacon said.