Jaguar Land Rover (JLR) boss Ralf Speth has said that the backlash against diesel and fears over the impact of a 'hard' Brexit have led to job losses in the car industry - at a time when he believes jobs should have been added.
Speth, who has been CEO of JLR since 2010, used his speech at the first Zero Emission Vehicle (ZEV) Summit in Birmingham to highlight his concerns over the potential impact Brexit could have on the firm.
He said: “Jobs have been shed when they should have been created. A thousand lost as a result of diesel policy. Those numbers will be counted in the tens of thousands if we do not get the right Brexit deal.”
Speth has warned of the dangers of Brexit to JLR in the past, and highlighted the lack of clarity from the Government around the issue in his speech, adding: “Brexit is due to happen on the 29th of March next year. Currently, I do not even know if any of our manufacturing facilities in the UK will be able to function on the 30th.
“We will not be able to build cars, if the motorway to and from Dover becomes a car park, where the vehicle carrying parts - vital to our processes - is stationary. Any friction at our borders puts our production in jeopardy - at a cost of £60 million a day. Unfettered access to the Single Market is as important a part to our business, as wheels are to our cars.”
Speth said that clarity from the Government is vital to the company’s decision making: “Six months from Brexit and uncertainty means that many companies are being forced to make decisions about their businesses that will not be reversed, whatever the outcome, just to survive. Talk diesel, petrol, hybrid or electric. Free, frictionless trade and clarity are the paramount fuels for our business.”
Join the debate
TStag
If a hard brexit is really
aatbloke
Anyone who advocates a hard
Anyone who advocates a hard Brexit simply have no idea as to the profound effect a complete divorce from the single market will have on British industries and retail which rely heavily upon just-im-time supply chains to retain productivity. The motor industry could conceivably be decimated, and that will fore the industry - which is controlled primarily by foreign corporations - to move elsewhere in the EU to supply the European market.
GODFATHER
aatbloke wrote:
the negotiation deadline can and probably will be extended if no agreement reached. Remember they have allot of people relying on parts and cars to be bought to keep them in work. The moment they are not being bought is the moment these large parts suppliers/ car makers are paying people to stand around
As for moving brands such as Bentley is possible but whose wants a non British Bentley? It’s stale enough already since the Germans took over. Rolls cars is owned by BMW but they don’t own the badge or logo. Aston and McLaren is privately owned by the Mid East as JLR owned by the Indians.
GODFATHER
TStag wrote:
They just need to get their supply from the more reliable japanese. Why would JLR choose to be hindered by the unreliable german parts? Anyone with any common sense just needs to see where the German cars brands are placed compared to the Japanese in the which? and JD power reliability surveys.
Beside, this is a two way deal. If JLR loses then the Germans loses 50% of the uk market. (10% each between merc, bmw,Audi, VW and the FordEurope (Germany based). Ironically that 50% does not include the French, Italians, Czech, Spanish, Romanians and Opel.
Symanski
Brexit is stupidity on stilts.
No version of Brexit makes Britain better off. It's already cost Britian jobs, and with borders going up and trade barriers too this is only going to be the tip of the iceberg. Worst affected will be our SMEs. Ones who rely upon trade with the EU.
And for what?
To satisfy the racists in our country. The ones who have no idea how interconnected modern business is. Even something as simple as the electric motor to lift the window probably comes in from a factory in France, whilst we might export the motor for the wipers. Trade is two-way and Europe has a choice where to buy from.
The only Brexit that makes sense is the one that doesn't happen. Britain should be leading in Europe, not retreating.
TheBritsAreComing
Nonsense!
Well Aston Martin aren't worried about a 'No Deal' Brexit if Andy Palmer's comments on Radio 4 are to be believed.
Maybe Speth is just aware that JLR's decision to build a factory in Slovakia looks rather stupid and pointless if we leave without a deal.
Chris C
Nonsense!
Quite the opposite - JLR would be able to continue supply the EU/ROW while the UK manufacturing economy at least temporarily grinds to an effective halt through lack of government planning.
Citytiger
Chris C wrote:
Where will the engines come from for these vehicles they are supplying to the rest of the world?
TheBritsAreComing
Chris C wrote:
That's not what Andy Palmer is perdicting. He says he's "not losing sleep" over the possibility of 'No Deal' and that Aston Martin are simply increasing their stockpile of EU sourced parts in case of delays.
The Colonel
Different focus
The reason why Palmer is more relaxed about it is because a much lower proportion of Aston's cars are sold within the rest of the EU - around 25%, third behind the UK alone, and has declined. With around half of their sales being outside of the rest of the EU and the UK, they also benefit more from a weaker £.
Palmer has also criticised the government over the lack of clarity in the approach to next March as well as the potential impact on recruitment.
Nearly all of the cars made in the UK by Toyota, for example, are for sale within the rest of the EU, around 85%. At the moment they have commited to producing the new Auris in Derbyshire but only if the government can secure a deal which will maintain current trading conditions until at least the end of 2020. Johan van Zyl said that continued free and frictionless trade between the UK and Europe will be vital for the future. Six months out, there's no sign of that yet.
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