Earlier today, Ralf Speth, CEO, Jaguar Land Rover called on the UK Government to provide certainty for business at the earliest. This includes seeking guarantees for tariff-free access and frictionless trade with EU in the situation Brexit becomes reality.
A Brexit deal gone bad would cost Jaguar Land Rover alone more than £1.2bn in profit each year. This would effectively impact spending as per long-term company plans. JLR has spent around £50bn in the UK in the past five years. An investment of a further £80bn is planned through the next 5 year period. All investment planning would be in jeopardy should JLR be faced with the wrong outcome.
Dr. Speth said, “Jaguar Land Rover‘s heart and soul is in the UK. However we, and our partners in the supply chain, face an unpredictable future if the Brexit negotiations do not maintain free and frictionless trade with the EU and unrestricted access to the single market”.
For the UK automotive industry to remain a global force to reckon with and be able to retain/protect 300,000 jobs in Jaguar Land Rover and the company supply chain, the business atmosphere needs to remain cordial and retain tariff and customs-free access to trade and talent with no change to current EU regulations. With current mobility focus on electrification and connectivity, economic and productivity opportunities are in plenty.
“Jaguar Land Rover and Tata Motors have always maintained that the uncertainties from Brexit are avoidable and the business seeks clarity to ensure that industry takes timely and right decisions to manage the transition. Additionally, Jaguar Land Rover needs free and full access to the single market beyond transition to remain competitive which we also firmly believe is in the best long term interests of the United Kingdom.
The recent statement from JLR only reaffirms this position that a Brexit which increases bureaucracy, reduces productivity and competitiveness of the UK Industry is in no-one’s interest. As this worst case Brexit scenario is just one of the many possibilities, our plans which were shared at the JLR analyst meet in the UK did not factor them and we continue to stand by what was shared. In the meanwhile, JLR will continue to work with government to secure the right free trade deal for the country, economy and industry” – PB Balaji, CFO, Tata Motors Group.