You are here: Home » Companies » News
Business Standard

Jaguar Land Rover begins Brexit-linked UK plant shutdowns for five days

Automotive firms face a number of possible risks under a disorderly Brexit, including delays to the supply of ports and finished models, new customs bureaucracy, and the need to recertify models

Reuters  |  LONDON 

Jaguar Land Rover, JLR
The move by Britain's biggest carmaker, to prepare for any disruption resulting from Brexit, was taken a few months ago at a time when the departure date - since extended to April 12 - was March 29.

Jaguar Land (JLR) shuts its UK plants on Monday for five days over Brexit, adding to other shutdowns to leave at least half the country's off-line in what could be a pivotal week for Britain's divorce from the EU.

The move by Britain's biggest carmaker, to prepare for any disruption resulting from Brexit, was taken a few months ago at a time when the departure date - since extended to April 12 - was March 29.

Automotive firms face a number of possible risks under a disorderly Brexit, including delays to the supply of ports and finished models, new customs bureaucracy, the need to recertify models and an up to 10 percent tariff on finished vehicles.

Theresa May's efforts to obtain a longer extension have also ruined contingency plans for some of them.

Shutdowns are generally organised far in advance so employee holidays can be scheduled and suppliers can adjust volumes, making them hard to move.

With Britain's political leaders still deadlocked over Brexit and some EU states questioning a further departure delay, said May would continue talks with the opposition to try to find a

BMW's UK Mini and plants are also shuttered this week, as is Peugeot's factory, which brought forward summer shutdowns to April.

Together JLR, Mini, and Peugeot's brand, which is branded as on the continent, built over 750,000 of Britain's 1.52 million cars last year.

has also scheduled six "non-production days" in April but has declined to say on which dates they will take place.

Britain's once has since 2017 posted sharp falls in sales, output and investment.

has already had to cut output last year as it faces declining sales, partly as customers shun diesel vehicles.

Overwhelmingly foreign-owned, the Britain-based has become increasingly frustrated as a stable and attractive investment environment becomes mired in a deep political crises, risking free and frictionless trade.

At least 25 percent of Britain's automotive engine capacity is also closed as BMW's central continues a four-week shutdown while JLR's site stops production for the week as part of Brexit preparations.

engine production will also stop on six days this month.

 

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, April 08 2019. 15:33 IST
RECOMMENDED FOR YOU