Brexit now has an official deadline of 29 March, 2019. If UK leaves the European Union without a deal, many businesses, both large and small, across the nation stand to suffer massive losses. Of the large businesses, two which are especially looking at big losses are Jaguar and Ford.
Previously this year, Jaguar and Ford both announced they would be cutting jobs at their respective facilities to quell mounting losses from the impending Brexit. With the landmark national decision set to come into force by 29th March, both the firms now have to face losing even more revenue.
Jaguar Land Rover has had to take harsh decisions to keep business afloat in the face of a no-deal Brexit.
Ford has predicted it could lose up to $800 million as a result of a no-deal Brexit. Company executives fear that the combination of WTO (World Trade Organisation) tariffs and the rapidly weakening British Pound will eat into the firm’s profits in the first nine months following a no-deal Brexit.
Ford has roughly 13,000 employers in the UK, accounting for 25 percent of its European workforce. Amidst the Brexit crisis, the company is looking to lay-off a significant chunk of its workforce to compensate for forthcoming losses.
Similarly, Jaguar is also struggling to keep turning a profit for sustainability due to Brexit. The UK’s biggest carmaker employs close to 44,000 people in the UK, and will be cutting as many as 4,500 to cut down its losses of up to $3.27 billion.
Ford employs a significant percentage of its European workforce in the UK, which stands to face a dire situation April onwards.
More recently, JLR announced that it would shut down its three facilities for a week following Brexit. Between 8-12 April, 2019, Jaguar aims to put in place a voluntary redundancy programme to curtail its diminishing revenue. It had earlier cut 1,000 temporary jobs at its Solihull plant last year, and posted a loss of $118 million in October. Jaguar had also shut down Solihull for two weeks in the same month. To reflect “fluctuating demand.”
For now, it is a wait-and-watch situation as leading brands that could be the worst affected due to Brexit are shoring up their positions to make it through the landmark UK exit from the European Union.