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Britain's largest automaker added its voice to the chorus of companies warning against a tough Brexit. The European Union (and within the cabinet) is warming up.
Jaguar Land Rover put further pressure on the government by warning that tens of thousands of jobs would be at risk if new trade tariffs with Europe were imposed after Brexit. CEO Ralf Speth quantified the impact, warning that a bad Brexit deal would wipe out more than £ 1.2bn in profits every year – making new investments simply impractical.
Speth said:
"As a result, we should drastically adjust our spending profile – we have spent about £ 50bn in the UK over the last five years, with plans for even more than £ 80bn in the next five years.It would be in danger if we were faced with the wrong result. "
JLR (like many other companies) needs free and frictionless exchanges with the EU and Unlimited access to the single market, says Speth.
The warning is deeply alarming for JLR's 40,000 employees, as the entire future of the company in Britain could be threatened.
As Speth said (via the FT)
"If I have to go out because we have the good deal, then we have to close factories here in the UK and it will be very, very sad, it is hypothetical, and I hope it is an option we will never have to do. "
This intervention comes one day before the Ministers' meeting to discuss Brexit Theresa May calls for a "third way" customs agreement, according to which the United Kingdom tracks goods when they arrive in the country and imposes import duties on them only if their final destination is inside the EU.
This might answer some of the concerns of companies, but hard-core Brexiters might argue that this is not a clear break with the EU. EU (who could reject the idea anyway).
Governor Mark Carney speaks at a important business summit in Newcastle. He will discuss the Northern Powerhouse Project – The city's traders will also be on the lookout for a rise in interest rates in August.
UK registration data for June are also released this month.
The Agenda
- 9am SMMT Car Sales for June & First Half 2018
- 10:45: Mark Carney Speaks at the Great Northern Exposition in Newcastle
- 3:00 pm BST: PMI Tertiary Sector American for June [19659021]
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