Negotiations over Financial Assistance and Local Content

Abstract

The Labour governments were reluctant to openly welcome the Japanese and providing a gateway into the EC market. Margaret Thatcher arrived as a game-changer, who had visited Japan as the Tory leader and was convinced with Japanese production management and trade unionism. The DTI put priority on high British local content requirements when negotiating with Nissan, using governmental aids as a bargaining chip. The SMMT insisted on the highest possible local contents and required Nissan to equip its plant with engine assembling and R&D centre. The TUC leaders expected new jobs created by Nissan, while member unions and local workers feared further redundancy in BL plants. The largest obstacle was Nissan’s internal conflict, not between management and the unions but within management and among the unions.