The British automotive company Jaguar Land Rover, begun far back in 1922, could face substantial losses come the results of the EU referendum taking place this week.
Troubled Waters Ahead for Jaguar Land Rover?
The EU referendum is a tense time for all, including the automotive industry. If Brexit – as it has been coined – wins out, the automotive industry could start looking a little different for some.
The reasoning behind the potential massive losses for JLR are based around Britain having to return to World Trade Organisation laws that, among many other things, would create a projected 10% tariff on exports and 4% tariff on components. This could be a devastating hit for the momentum of the company that built an impressive 1 out of 3 of Britain’s 1.6 billions vehicles in 2015.
As part of our standard business planning process, we regularly look at macro-economic and geo-political developments around the world. – A JLR spokesman.
It’s Already Looking Rocky…
Work at a potential JLR plant in Slovakia, announced back in December and said to create 2,800 jobs, has now been put on hold while the situation is still murky.
It is inevitable that we would face increasing and higher tariffs, making our products less competitive in Europe. – JLR CEO Ralf Speth.
And so we Wait
Despite the turmoil and rumours flying, a JLR spokesman confirmed that the Jaguar Land Rover headquarters would be remaining in Britain. But even with this glimmer of hope, given that the move to leave the EU has been tipped as having a marginal poll lead, it’s not looking good for JLR.
Sources: Reuters
