Jagaur Land Rover is feeling the squeeze and is about to slash 5,000 jobs due to a decline in diesel sales in Europe and Chinese sales.
However, Brexit could cause the company even worse trouble claims the Business Secretary, Greg Clark.
Clark believes that a No Deal Brexit would do “extra damage” to the car maker just as it is going through a troubling period.
Thousands of jobs are reported to be cut, mainly in management, marketing and administrative roles, in a bid to cut costs and streamline the business,
Clark said, who today described No Deal as “dire” and “disastrous”, told Sky News: “It is well known that sales in China have been falling. And 90% of their vehicles are diesel and we know right across Europe… there’s been a fall in demand for diesel.
“But the company’s always been very clear that they export a lot of vehicles to Europe.
“They have just in time production that has components coming backwards and forwards from the continent, that needs to be done very efficiently.
“And so a No Deal Brexit , a disorderly Brexit, would add extra costs, do extra damage, to the company just at the time when clearly they don’t need that.”
Speaking to the BBC, he added the firm “have always been clear their success depends on exports including to the rest of the EU, [to which] tariffs would be disastrous.”
The Minister was not willing to confirm the 5,000 job losses but commented that: “The company is going to meet with the workforce later in the day.
“From what we do know, this is going to be a sad day for many of them.”
https://www.thelondoneconomic.com/opinion/its-time-to-bust-the-biggest-brexit-myth-that-the-uk-holds-all-of-the-cards/10/01/