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.”
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .