Jaguar Land Rover’s manufacturing future will be influenced by Brexit says CEO
THE future of Jaguar Land Rover’s manufacturing strategy will be influenced by how the Government eventually decides to handle the UK’s departure from the EU, its chief executive has said.
The carmaker has pumped billions of pounds into upgrading its production facilities in the UK but future investment decisions could be reassessed if the exit from the Single Market is unfavourable, Ralf Speth said.
However, any withdrawal from the UK is extremely unlikely, with Dr Speth saying the Government was aware of the significance of JLR to the UK’s economy.
The company, Britain’s biggest car manufacturer, has been keeping a close eye on developments since the Government’s recent pledge to Nissan.
Business Secretary Greg Clark said the Government was determined to ensure carmakers’ – and suppliers – access to EU markets was maintained after Brexit without any tariffs being imposed or red tape to overcome.
Speaking on the eve of the Los Angeles Motor Show, Dr Speth told Sky News that any new tax and tariff barriers with Europe could pose major challenges to the manufacturer.
The company sells hundreds of thousands of cars into the European market and also sources many of its components from the Single Market.
It has also recently begun construction on a new manufacturing plant in Slovakia.
Dr Speth said he had been encouraged by talks between the manufacturer and the Government but any talk about where future resources might be committed was premature.
