Published: Mon, July 09, 2018
Economy | By

Jaguar Land Rover issues stark warning on 'bad Brexit'

Jaguar Land Rover issues stark warning on 'bad Brexit'

Jaguar Land Rover, which is owned by India's Tata Motors, is the latest major company to warn about the potential economic damage from a messy Brexit.

On Thursday, Jaguar Land Rover - the UK's biggest carmaker - said a "bad" Brexit deal could force it to close factories and would threaten £80bn of investment plans for the UK.

"As a result, we would have to drastically adjust our spending profile", he warned, noting that JLR plans to invest pound sterling80 billion in the next five years.

'This would be in jeopardy should we be faced with the wrong outcome.

His comments came after JLR chief executive Speth yesterday warned that the India-owned British firm's future may not be in the United Kingdom if a hard Brexit comes to pass.

Mr Western, who has been having meetings with JLR bossess in recent weeks, said: "JLR are exasperated by the situation". And the European suppliers now will be forced to compete or they will lose Jaguar Land Rover's business.

It said the current planned transition period, due to end in December 2020, was too short for it to make changes to its supply chain.

"This is hugely important and it just shows how urgent this situation is".

Vehicle manufacturers, which rely on complex global supply chains, are anxious that Brexit will lead to new trade barriers and delays at the borders.

Last year, it made more than 600,000 cars, 20% of which were sold to mainland Europe, one of its biggest markets.

Jaguar's partners in the supply chain face an uncertain future if the British Government's negotiations fail to reach a trade deal.

Jaguar Land Rover, which was bought by Tata a decade ago and employs more than 40,000 people in Britain, told the government on Wednesday that it wanted more clarity over the country's future relationship with the European Union before...

New Land Rover cars are seen in a parking lot at the Jaguar Land Rover plant at Halewood in Liverpool, northern England.

The company has already said it will move production of its Land Rover Discovery to Slovakia from Solihull by early next year. The warning follows similar statements from BMW and Airbus. However, Health Secretary Jeremy Hunt has called these warnings "completely inappropriate". Dr. Ralf Speth, urged the British Government to provide certainty for businesses in post-Brexit Britain.

"It is likely that we will see food rotting at ports, reducing the choice and quality of what is available to consumers", the BRC said, calling for no new barriers and flexibility from the European Union during a transition period.

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