Warning as Jaguar Land Rover calls for `greater…

Marco Green
July 9, 2018

German business leaders have issued a strongly worded statement warning they are "reluctant" to invest in Britain because of Brexit uncertainty.

"I don't want to threaten anybody, but we have to make transparent the implications of the move". We want to stay in the UK.

The Tata Motors-owned company has already been reeling with the adverse impact of unfavourable movement of the pound against the dollar in the aftermath of the Brexit.

The company claimed that any delay to parts delivery at its largest plant in Solihull - which builds 1,500 cars per day - would force the suspension of production at a cost of £1.25m per hour.

A Brexit arrangement that doesn't ensure full, tariff-free access to the European Union's single market will be highly costly to the United Kingdom's largest vehicle maker, he said.

Speth's statement confirmed earlier comments he made in an interview with the Financial Times, published late on Wednesday.

"Jaguar Land Rover are perfectly entitled to express concern".

It also comes less than a month after Jaguar Land Rover, based in the West Midlands, central England, promised to retool its Solihull plant near Birmingham for a new generation of electric cars.

After those warnings in June, Health Secretary Jeremy Hunt said the threats were "completely inappropriate".

The company, which is owned by India's Tata Motors, employs 40,000 people in the United Kingdom, and supports a further 260,000 jobs in the United Kingdom supply chain.

- In 2017, the company sold 621,000 cars.

"Uncertainty is already hurting investment and if the Government cannot provide urgent assurances to business on negotiating a deal that secures frictionless trade with the European Union, our biggest export market, 40,000 jobs at Jaguar Land Rover and countless supply chain businesses could be lost in the blink of an eye, devastating our world-leading automotive sector along with the communities that support them".

"Get Brexit wrong and British people, businesses and broader society lose the chance to lead in smart mobility", he said. May is under increasing pressure from European Union officials, companies and some lawmakers to move faster with the negotiations to leave the European Union, a departure that will be Britain's biggest trading and foreign policy shift in half a century.

In April, it decided not to renew the contracts for 1,000 temporary workers in Solihull.

Other reports by Click Lancashire

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