By on June 24, 2016

Red_Devils-Union_Jack (Wikimedia Commons)

The United Kingdom, through referendum, has decided to break off from Europe and go it alone. But what of all the auto manufacturers that produce vehicles in the island nation? And of their employees? And trade?

We won’t know the answers to those questions until the UK and European governments sort out how the two entities will work together in the future. For now, it’s business as usual. Though, thanks to Autocar, we at least have reactions from the big players in the UK’s automotive industry.

BMW, manufacturer of Mini in the UK

“BMW Group respects the British electorate’s decision to leave the EU. While it is clear there will now be a period of uncertainty, there will be no immediate change to our operations in the UK.”

Ford

“Ford’s priority has always been the need to maintain a stable trading environment so that we can continue building a strong and sustainably profitable business in the UK and Europe, and thereby provide a more secure future for our nearly 14,000 direct employees in the UK.

“We will continue working toward this goal with key stakeholders in the UK and across the other Member States and EU institutions to ensure they understand our concerns, which mirror those of the majority of the UK and European auto industry.

“While Ford will take whatever action is needed to ensure that our European business remains competitive and keeps to the path toward sustainable profitability, we have made no changes to our current investment plans and will not do so unless there is clear evidence that action is needed.”

Jaguar Land Rover

“For Jaguar Land Rover, today is just business as usual. We are a British business with a strong manufacturing base in this country, we call Britain home and we remain committed to all our manufacturing sites and investment decisions.

“We respect the decision of the British people and in common with all other businesses, Jaguar Land Rover will analyse the issues arising from it: as of today, nothing has changed for us or the rest of the British automotive industry.

“Europe is a key strategic market for our business, comprising 20% of global sales, and we remain absolutely committed to our customers in the EU.

“There will be a significant negotiating period, and we need to understand more about that as details emerge. We will work hard with all parties to ensure that the importance of the British automotive industry is fully understood at every level of the negotiation process.”

Nissan

The Autocar report states Nissan declined to comment, but it mentioned that the Japanese brand plans to sue the Vote Leave campaign after its logo was used in a flyer.

Toyota

“Going forward, we will closely monitor and analyse the impact on our business operations in the UK, and how we can maintain competitiveness and secure sustainable growth together with the UK automotive industry and other stakeholders.”

Vauxhall, General Motors brand in the UK

“It is important for Vauxhall that negotiations on the UK’s future relationship with the EU are concluded in a timely manner. It is also important that business continues to benefit from the free movement of goods and people during this period.

“Communication on the development of the future relationship with the EU should also be clear and transparent. We fully support remaining part of the European Economic Area.”

Society of Motor Manufacturers and Traders (SMMT)

“The British public has chosen a new future out of Europe. Government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests.

“This includes securing tariff-free access to European and other global markets, ensuring we can recruit talent from the EU and the rest of the world and making the UK the most competitive place in Europe for automotive investment.”

[Image: Wikipedia]

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79 Comments on “Here’s How Britain’s Automakers are Reacting to Brexit...”


  • avatar

    The problem with socialism is that eventually you run out of other people’s money to spend. -Thatcher

    CONGRATULATIONS TO THE UK!

    They voted for freedom and put one more bullet hole in the heart of the globalists. America will follow in November when we elect Trump president.

    Those lesser European countries are gonna end up as posterchildren for austerity.

    Yellen and the troublesome refugees are now on notice.

    Nationalism is making a comeback baby!!!

    We are going to MAKE AMERICA GREAT AGAIN!!!

    • 0 avatar
      Advance_92

      I thought Britain was the poster child for austerity. They were on war-time rations well into the 1950s.

    • 0 avatar
      FreedMike

      “Nationalism is making a comeback baby!!!”

      Yep, that was such a great thing for Europe…the last time it produced some great music like this, though…

      youtube.com/watch?v=MD6oDnm43HA

      Catchy tune.

      • 0 avatar
        Geekcarlover

        So because an absolutely bugnuts crazy group had it as one of their rallying points, I’m supposed to be apposed to it in perpetuity?
        We are told (constantly) that groups like ISIS don’t represent Islam. They are an extreme outlier. Is it possible to want to put the interests of my country before other countries (to be a nationalist) and not be a Nazi?

      • 0 avatar
        jpolicke

        Which is why it always annoyed me to hear those oh-so-sophisticated Brits on Top Gear [including the tax exiles that lived in the U.S.] making their snide comments about the USA. If not for us they’d be singing it today.

    • 0 avatar
      philadlj

      From the Financial Times:

      “…It was the working classes who voted for us to leave because they were economically disregarded and it is they who will suffer the most in the short term from the dearth of jobs and investment. They have merely swapped one distant and unreachable elite for another one.”

      “…The younger generation has lost the right to live and work in 27 other countries. We will never know the full extent of the lost opportunities, friendships, marriages and experiences we will be denied. Freedom of movement was taken away by our parents, uncles, and grandparents in a parting blow to a generation that was already drowning in the debts of our predecessors.”

      “…We now live in a post-factual democracy. When the facts met the myths they were as useless as bullets bouncing off the bodies of aliens in a HG Wells novel. When Michael Gove said ‘the British people are sick of experts’ he was right. But can anybody tell me the last time a prevailing culture of anti-intellectualism has lead to anything other than bigotry?”

      • 0 avatar
        28-Cars-Later

        I’m not responding to you personally, just the points.

        “It was the working classes who voted for us to leave because they were economically disregarded and it is they who will suffer the most in the short term from the dearth of jobs and investment.”

        Well we don’t have many real jobs in the US, I doubt many in the UK. However now some more time of “no jobs, no real economy” might eventually pay dividends whereas before nothing would ever change.

        “Freedom of movement was taken away by our parents, uncles, and grandparents in a parting blow to a generation that was already drowning in the debts of our predecessors”

        Hogwash. New trade treaties will be negotiated, and old border controls will be set up. Omg its almost as if we were thrown back to 1970!

        “last time a prevailing culture of anti-intellectualism has lead to anything other than bigotry”

        19th Century intellectualism led to eugenics, which later begat genocide. Funny how that’s always left out.

        • 0 avatar
          FreedMike

          Nazism was just dictatorship dressed up with a more modern, PC title. So was Soviet communism.

          World War II happened for the same reason every other war in Europe to that point had happened – it was a land / power / resource grab made by an absolute ruler. The only difference was that the Germans had modern technology and industrial capabilities. If anything, Nazism was, in fact, the thinking of the 18th and 17th centuries, dressed up in pseudo-intellectualism.

          • 0 avatar
            Lou_BC

            FreedMike – agreed. Karl Marx said religion was the opiate of the masses. One can lump political ideology under that umbrella.
            Any time a populace suffers they will try to latch onto beliefs that they think will improve their situation. A charismatic leader will exploit that situation.

            England was prosperous due to the initial advantage it gained from industrialization and naval/military strength leading to the British Empire. All empires eventually collapse.

            There are those that will view this as a socialist failure but it tends to be neoliberal open market ideology that lends itself to an increased number of poor and disenfranchised middle class.

            “The problem with free market capitalism is that eventually you run out of other people’s money to exploit.”

          • 0 avatar
            Kenmore

            “religion was the opiate of the masses”

            I’m a massling I’ve tried both; gimmee opiates.

          • 0 avatar
            RHD

            Vicodin is the opiate of the masses, followed closely by Oxycontin.

          • 0 avatar
            Lou_BC

            @Kenmore, RHD – secular society has to turn to something ;)

          • 0 avatar
            28-Cars-Later

            19th and 20th Century eugenics were popularized and pioneered by the British.

            “While eugenic principles have been practiced as far back in world history as Ancient Greece, the modern history of eugenics began in the early 20th century when a popular eugenics movement emerged in the United Kingdom[8] and spread to many countries, including the United States and most European countries.”

            https://en.wikipedia.org/wiki/Eugenics

        • 0 avatar

          UK has had a problem with jobs since KING RALPH.

          • 0 avatar
            RobertRyan

            There was a documentary done in 2006 from memory, that a research employee on a Agricultural institute in Australia, was a true descendent of the English Kings not the current Royal Family. He liked having BBQ’s and a ” breaking open a tinny” at Home. He was ” King Ralph”.
            At first he thought the whole King thing was a joke, but he inherited lands and a Manor House from his English connections. Documentary was done by Tony Robertson of Blackadder and Time Walks fame.
            He went back for a while, but was not his thing and came back to live in his old house, with his wife and daughters
            http://www.theage.com.au/news/national/aussie-mike-the-true-king-of-england/2005/09/10/1125772732666.html

        • 0 avatar
          carguy

          @28-cars-later: “Hogwash. New trade treaties will be negotiated, and old border controls will be set up. Omg its almost as if we were thrown back to 1970!”

          Yes and any and all access deal for the common market requires two things:
          1. The payment of dues
          2. The free movement of labor

          So this nativist tantrum will only serve to increase the fees that the UK pays and will remove any influence they have in continental politics.

          • 0 avatar
            28-Cars-Later

            If the crumbling union wishes to play “Berlin Wall” and isolates the UK in some manner, I might be inclined to agree with you. I do however doubt due to proximity and shared history, the UK will cease to have relevant influence in continental politics.

            I will add none of this would have happened under the old EEC, the crux of this is independent nations do not wish to be dictated to from afar.

            “The main aim of the EEC, as stated in its preamble, was to “preserve peace and liberty and to lay the foundations of an ever closer union among the peoples of Europe”. Calling for balanced economic growth, this was to be accomplished through:[15]

            The establishment of a customs union with a common external tariff

            Common policies for agriculture, transport and trade, including standardization (for example, the CE marking designates standards compliance)

            Enlargement of the EEC to the rest of Europe

            For the customs union, the treaty provided for a 10% reduction in custom duties and up to 20% of global import quotas. Progress on the customs union proceeded much faster than the twelve years planned.”

            If you cut out the “lay the foundations of an ever closer union” this is more or less what the Europeans wanted and still desire. Trade between nations lessens the chance of military conflict.

            https://en.wikipedia.org/wiki/European_Economic_Community

          • 0 avatar
            ToddAtlasF1

            Any of you one-worlders notice that most of the other member nations are looking to the UK with pure envy writ large across their soon-to-pull-out faces? The UK has more influence now over the EU than they ever did when they were its second-biggest leech host.

          • 0 avatar
            VoGo

            Speaking of leech hosts, how is your mom, and has she settled on an ultimatum for you getting out of the basement?

        • 0 avatar
          truecarhipsterdouche

          Bingo 28 Cars. If I were rich, I’d make sure you get a 29th!!!!

        • 0 avatar
          JimothyLite

          “Left out.” LOL.

      • 0 avatar
        Piston Slap Yo Mama

        philadlj – thx for the quote. Britain used ‘democracy’ to decide a topic that its voters weren’t capable of fully grasping – and let their xenophobia overrule logic.
        Best primer I’ve ever found on democracy’s failure: http://boingboing.net/2010/08/11/tom-the-dancing-bug-15.html
        I predict European tariffs will kill the British car industry as a reprisal.

        • 0 avatar
          28-Cars-Later

          Interesting prediction, you may be proven right.

          • 0 avatar
            CoreyDL

            They can easily move the factories over to a neighboring still-EU country – one with equal or lesser production costs. Or, just close them altogether and move back to Japan and America which will surely present fewer hurdles.

            I love that they’ve voted for this motion, and their only guaranteed benefit is “We’ll see.”

          • 0 avatar
            Mandalorian

            Getting out of the EU saves them 13 billion pounds a year, I’m sure they can give some nice tax breaks to the manufacturing sector with that savings.

          • 0 avatar
            CoreyDL

            Net contribution last year was 8.8bn GBP after the allowance for economic development is considered. Your figure is much too high.

        • 0 avatar
          RobertRyan

          No, not the current makers but will impact Ford and GM

    • 0 avatar
      Big Al from Oz

      BigTrucks,
      Do you know what socialism is?

      Do you know why most EU countries ended up the way they are? It was through wars. WWI and WWII really highlighted to Europeans that they can’t survive the way they were heading.

      WWI and WWII left Europe in a real shambles, destroyed. So the nations needed to rebuild. The only instruments able to meet the challenge of rebuilding were the governments. Do you understand what a mega project is?

      The rebuilding of Europe was a mega project. That is business was used and managed by government for the rebuilding. This is a significant reason why the Europeans are the way they are with the government involved in many businesses.

      The US is heading in that direction as well, as is Australia.

      • 0 avatar
        Lou_BC

        Big Al from Oz – too many get the various labels attached to political systems wrong. In some respects it is much simpler to call something bad or evil and leave it at that. It conveniently removes the need to accept the fact that the world is considerably more complex then what one chooses to believe. It also removes the awkwardness of having to accept the fact that all human beings have the exact same thoughts and feelings as we do. it is also difficult to accept that under unusual circumstances we too are just as likely to allow or take part in some very nasty actions.

        • 0 avatar
          RobertRyan

          Lou_BC
          Many ” Socialist” entities are now Coporatised businesses. Most prominent for people from the US are BAE Defence Systems and Airbus.
          Renault has been travelling along nicely as a ” Socialist” enterprise

        • 0 avatar
          FreedMike

          This. Folks like BTSR bandy around the word “socialist” because it means they don’t have to think. Thinking is hard work. Blather is easy.

        • 0 avatar
          ToddAtlasF1

          Lou_BC, you’ve certainly got that last bit right about yourself. There are those of us who won’t go along to get along though. Our culture kills millions of babies, promotes insanity, strips industriousness from its people, and teaches that feelings are a justice in themselves. A slight majority will believe anything to avoid accepting what they’re a part of.

      • 0 avatar
        truecarhipsterdouche

        Most countries are not socialist, they are corporate kleptocracies.

        • 0 avatar
          Lou_BC

          truecarhipsterdouche – very true. We see that currently in Russia, China and USA. Those in power either rotate through big business or do both at once. In USA the best example was the Dubya Bush/Cheney/Rumsfeld era.

    • 0 avatar
      Joss

      Merry ol’ England took a step away from yankee with the Bank of Asia. China’s the new rub not the World Bank. The RN’s on reduced carrier orders. One built, the other 5 downed to 3 and those may not be built due to Brexit.. So no bulldog for the USN in the south china seas.

      Any British prime minister is just a front for the domestic scene. The civil service and particularly the foreign office are the real policy makers & string pullers. They’re a wheelin & dealing with China and Putin’s people.

      When the UK signed with China’s bank (and reduced it’s aircraft carrier order,) Beijing called them “A thinking people.”

      What the foreign office are is a ruthless calculating machine.

      Thatcher front was used to bust the unions. Then gotten rid of once it became too big for its boots.

      Brexit is a neighborhood spat with media petrol poured on.

  • avatar
    SCE to AUX

    Great comment from the linked article about Nissan’s complaint about the Leave brochure:

    “The pamphlet will be wrapping chips by Friday and the BREXIT company will be dissolved.”

  • avatar

    No doubt that all foreign car makers and investors in the UK auto industry will reconsider expanding production facilities in the UK. For instance, BMW may well decide to bring part of the Mini production in Oxford over to the plant it is already leasing from NedCar in the Netherlands. All dependent of course on the outcome of the trade negotiations. Forget about participating in the many EU funding programs to stimulate Green Car innovation.

  • avatar
    mustang462002

    Why are so many people (Americans) against the independence and freedom of a country? Time to read some federalist papers and get aquatinted with American history. Skip to the section about the tyrany of the unelected aristocracy (modern day bureaucracy).

    • 0 avatar
      Lou_BC

      @mustang462002 – we elect our leaders. They just happen to follow the money like everyone else. Selfishness, greed and lust for power are not new sins.

      • 0 avatar
        ToddAtlasF1

        Anyone that would take economic gain over self determination is…probably not someone that can be accurately described within the commenting guidelines.

        • 0 avatar
          Kenmore

          Izzat why you po’? Too much dignitay?

        • 0 avatar
          VoGo

          Maybe they’re just hungry. Maybe they are waiting for your 19th birthday in the hope that you’ll have a more mature world view.

        • 0 avatar
          Lou_BC

          @ToddAtlasF1 – I was referring to political leaders. They follow the money but that also applies to a degree to the populace. Keep them fat and happy and they don’t really care about concepts like self determination. Most democratic elections are lucky to see 50% of the populace turn out to vote. As long as they get to pick from the menu at the drive through is as self determined as it gets for many.

    • 0 avatar
      Piston Slap Yo Mama

      mustang462002 – Sorry, I absolutely don’t see the correlation. You can’t wave a flag and cite a two century old conflict and expect that it’s apples to apples when it’s really cheese and chalk. Britain has just traded its economic future away for almost entirely xenophobic reasons, or at least that’s how it was sold to its less perceptive voters.

      Your comparison would make more sense if you imagined an alternate history where in 1776 a nascent America shut its borders and closed down foreign trade…

      • 0 avatar
        bumpy ii

        True. That happened in 1807 and came within a fair chance of dissolving the union.

      • 0 avatar
        mustang462002

        No one is talking about shutting down trade. Old trade agreements will be renegotiated without any hesitation with the same regulations as before. Too much money at stake from the banking capital of the world London.

        The American constitution was crafted two centuries ago and it is still is critical to the function of our government. Don’t let anyone try to tell you that it is obsolete or does not apply. Presients that want more power always try to dismiss it as obsolete and not applicable to our modern life.

        The flag waving is still very important and critical to our national identity. Why should we have a central unelected government telling us what to do?

        • 0 avatar
          Big Al from Oz

          mustang462002,
          Do you know what consensus is?

          That’s how trade works. You just don’t reach a new consensus as easily as you are stating.

          The UK must now re-negotiate it’s trading position not just with the EU, but globally.

          London is the world’s largest financial centre in the world. This might be hard for you to believe that it’s not Wall St.

          London’s financial centre grew significantly because of the UK’s position first with the EEC then with the rollout of the EU. The EU is on par or slightly bigger than the US as a trading entity.

          Would you like NYC Wall St to move to Mexico City or even Toronto? All that is needed is for a small amount, 20% of Londons trade to move back to the EU and it will cripple the UK. This is trillions of dollar/pounds worth of trade, just 20%. The UK just can’t stand there and tell the EU it’s not fair. The EU will state, you left us and you are no longer apart of us. Why should our business go in your direction.

          My comment has also not factored in the manufacturing in the UK. How much of it is directly related to the EU? All that is needed is for a small percentage of that to move back to the continent as well to have a huge impact on the UK.

          The UK will still have trade, but reduced trade. This will reduce the standard of living to all in the UK, ie, like a pay cut. Spending more to exist.

          The US is similar with that Donald Trump guy, as Lily Allen correctly portrayed the “moron” from America. If Donald Trump and the others who think they are “saving America” by becoming independent are full of it. Trump will isolate the US by presenting the US as insular. The US is no longer in a position where it can “demand” terms and conditions of trade. The US and some who even comment on this site must realise this.

          The UK experience should be an eye opener to those who believe that nationalism works. Watch closely what will occur in the UK. This is for those Trump supporters who blame all but themselves for their position in life.

          If Trump is elected I predicted the beginning of the end of the US’es might. Similar to how Britannia sank. A slow and gradual decline.

          Donald Trump is that disconnected from reality, even with issues that are significant to the US and globe as the Brexit he told the Scottish that he was glad they (the Scots) voted for independence! When in fact the vast majority of Scots voted to remain in the EU! And people will vote for this Trump schmuck.

          I thought I would never see the day I want a Democrat to win. Hillary. Geez, I’m glad we are not that polarised yet as a nation. One extreme to another, when moderation is what is needed right now.

          mustang462002, Google the impact of trade globally and how free trade works vs protectionism. Protectionism doesn’t protect jobs and income. It’s not that simple. The US needs to trade externally to survive. Reducing this and living “Made in ‘Murica” will only increase the cost of goods and services and make everyone poorer.

          • 0 avatar
            Kenmore

            Like a medical scatologist, I’m acquiring the ability to detect blood alcohol levels by merely glancing at these enormous bowel movements.

            And yet I still wish to live o_O

          • 0 avatar
            Lou_BC

            @Kenmore – someone has too much fibre in their diet.

          • 0 avatar
            Kenmore

            Five months of mostly poultry, fish & veggies to knock my A1c down to an operable level. Lost 35 lbs, got my new hip.

            Now is the blowback!

          • 0 avatar
            Lou_BC

            @Kenmore – kudos.

    • 0 avatar
      FreedMike

      Well, Britain independently and freely entered into the EU, so I don’t see how that was an act of oppression.

      • 0 avatar
        jkross22

        “Well, Britain independently and freely entered into the EU, so I don’t see how that was an act of oppression.”

        … And now the people have spoken and want out. It’s puzzling how those of us who don’t live in the UK are somehow now experts on the subject. I have no idea why Brits voted out, but I’m sure it’s for reasons most of us here either are unaware of or don’t understand. Either way, the people have spoken.

        The biggest surprise is that they used paper ballots.

  • avatar
    RHD

    Like many voters in the UK, the skydiver pictured above appears to have lost his head.

  • avatar
    dukeisduke

    What “British” automakers are left? Morgan?

  • avatar
    CoreyDL

    “This includes securing tariff-free access to European and other global markets”

    Ha, what do you think you’re paying that membership fee to the EU for, exactly? You ditch the club – they’re not gonna let you have the benefits without paying.

  • avatar
    Big Al from Oz

    I believe the UK will survive, but the standard of living for people in the UK will definitely drop.

    Here’s why;
    1. The UK will still trade with the EU. This trade will be reduced due to preference given to other EU members first.

    2. London is the world largest financial trading centre. Much of the trade revolves around the EU. Will other EU nations increase financial trade?

    3. The UK will need to re-negotiate free trade deals with nations outside of the EU. With the pound being lower and more attractive for goods and services it will be seen as a larger threat.

    4. Many EU member companies set up shop in the UK. These companies might be “forced” back to the Continent through subtle pressure, ie, financial incentives, less red tape, etc.

    The changes required for the UK to remove itself from the EU will take years. Just the free trade negotiations required globally will take a huge effort and expend much in resources. The UK can ill afford this. Like much of the EU the UK isn’t sitting as rosy as the politicians state.

    The UK has lost out, what a pity.

  • avatar
    Joss

    How much of the 4% margin was just anti-Cameron vote?

    What has the civil service been upto witb China and Putin? The foriegn office spins policy, prime ministers come and go and are just a front for the domestic scene.

    Putin has been so quiet. Behind the scenes deals must have been reached. Then they sign with China asian bank and reduce the number of aircraft carriers from 7 to 3. No big presence in the south china seas…

  • avatar
    zipper69

    As a Brit who lived and worked in Europe for almost a decade until 2007 I weep for the unthinking morons that waved the “Little England” flag and allowed xenophobia to control them.

    The question they failed to ask themselves: “What benefit does exit from the EU give to the UK?”
    The answer is of course. none.

    The market has tumbled, exchange rate in the crapper and thousands of expat Brits in Europe now uncertain as to their status. Mentioned in my Florida paper today, Brits who have holiday homes in Spain, Italy
    and Greece. Currently they can stay year round, if they are suddenly just “foreigners” will they be like non-US citizens here and be forced to limit their visits to, say six months?

    What of the tens of thousands of EU citizens living and working in the UK? Will they have a Trump-style roundup and deportation?
    I see there is already a million signature petition for a second vote…too little, too late !

    I saw this retrograde thinking process building up which is why I chose to find a safe haven in the USA and happily become a citizen.

    • 0 avatar
      Lorenzo

      The biggest price will be paid by the Germans. The whole EU idea was a plot to leverage German industrial might to conquer the continent, and the British have foiled them again.

      Notice how when every measure the Germans didn’t like was proposed, the German judges would declare those measures would violate the German Constitution, and unless changed, Germany would have to leave the Union, endangering its survival? No other country in the EU had that kind of veto power over the unelected bureaucratic elite who actually run the EU.

      Germany was the “first among equals”, and history has shown how that arrangement ends up. Germany’s ministers work hand-in-hand with the commissioners who write laws and regulations, and often ARE the “kommisars” as the Germans themselves call them. The parliament can’t even propose, much less pass laws, and there’s no chief executive, so there’s no counterweight to German dominance of the unelected back room commissions.

      Zipper, you need to face the fact that all the open borders/free trade/freedom of movement and opportunity was just propaganda to disguise the attempted hegemony of Europe by its richest country, Germany. The biggest financial damage will be suffered by the Germans, not the British.

      The Brexit vote has just stopped the whole underhanded scheme to convert a common market trade arrangement into a German dominated super-state in its tracks. If you don’t believe it, watch what Germany does in the coming months to attempt to salvage the operation. The measures required to suppress other referenda and keep the remaining member states in line will not be subtle.

    • 0 avatar
      Lou_BC

      zipper69 – looks like the Scotts are going to try to block Brexit.

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