Tata backs JLR warnings over 'hard' Brexit

Jaguar Land Rover has joined a growing chorus of warnings from major companies and business groups over the dangers of a 'hard' Brexit to the UK economy.

Jaguar Land Rover cars lined up
His comments – backed in a statement from Tata Motors headquarters in Mumbai – came on the heels of similar warnings recently from the bosses of Airbus, BMW and Nissan, as well as calls from business organisations for a constructive customs arrangement with the EU.

Brexit uncertainty

Mr Speth said JLR’s “heart and soul was in the UK” but added, “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.“We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees. A bad Brexit deal would cost Jaguar Land Rover more than £1.2 billion profit each year.“As a result, we would have to drastically adjust our spending profile. We have spent around £50 billion in the UK in the past five years, with plans for a further £80 billion more in the next five. This would be in jeopardy should we be faced with the wrong outcome.“For more than 250 years, since the era of Adam Smith, Britain has championed free markets and made the case for free trade.“If the UK automotive industry is to remain globally competitive and protect 300,000 jobs in Jaguar Land Rover and our supply chain, we must retain tariff- and customs-free access to trade and talent with no change to current EU regulations.”
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UK working alongside business

In his response to the car giant’s warning, Business Secretary Greg Clark tweeted, “JLR is a great British success story. We are determined to make sure that it can continue to prosper and to invest in Britain.”But in Mumbai, P.B.Balaji, PB Balaji, Tata Motors Group chief financial officer, issued a statement supporting Mr Speth’s position.“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,” he said.“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 the government to secure the right free trade deal for the country, economy and industry.”The warnings came ahead of a meeting Prime Minister Theresa May is holding with warring members of her Cabinet on Friday to try and agree on a UK proposal for future trade arrangements with the EU after Brexit.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online Directory 

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