Companies

Fearing Brexit disruption, JLR to stop production for one more week in April

Vidya Ram London | Updated on January 25, 2019 Published on January 25, 2019

The JLR has repeatedly warned against a hard exit from the 28-member economic bloc

CEO of Airbus, too, talks of ‘abandoning’ UK amid turmoil

Jaguar Land Rover is set to halt production for an additional week in April – the second stoppage in less than six months – due to potential disruption triggered by Brexit. The move will affect all its UK sites, including the three car plants and its engine manufacturing site, and highlights the pressures on Tata Motors’ luxury brand, which earlier this month confirmed that it would be cutting 4,500 jobs globally amid concerns over China, appetite for diesel cars, and Brexit.

The announcement comes as the CEO of Airbus Tom Enders warned the company might be forced to abandon the UK if the country crashed out of the EU without a deal. JLR too had previously warned that a bad Brexit deal could cost it as much as £1.2 billion in profit each year, putting £80 billion of further investment and jobs at risk. It has also pointed out that it could only stockpile a few days’ worth of parts if it were to face disruption due to a no-deal exit.

Britain’s auto industry has repeatedly warned that a good deal with Europe is essential for maintaining its intricate supply chain network. Earlier this month, Honda also said it would be suspending operations for six days in April over Brexit and to ensure it is able to adjust to new logistics and border disruptions.

The combined actions and warnings from business groups add to the pressure on the government of Theresa May to take a no-deal exit off the table in its negotiations. May is also under increasing pressure from within her own administration, with Chancellor Philip Hammond warning that a no-deal would involve a “betrayal” of what people voted for, while Amber Rudd, the Work and Pensions Secretary, told the BBC she wouldn’t rule out resigning if ‘no-deal’ is not taken off the table.

 

 

 

 

 

Published on January 25, 2019
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