Jaguar Land Rover has shut its UK plant for five days starting from Monday, ahead of Brexit. The British company is among a slew of manufacturers which have seized operations in what could be a pivotal week for Britain’s divorce from the EU.
The decision was taken a few months ago when the departure date was finalised to be March 29. However, citing a few unprecedented delays, the date was extended to April 12. A disorderly Brexit comes at a great cost for automotive firms with imminent disruptions in the supply of parts and finished models. Additionally, a new bureaucracy, the need to recertify cars and an up to 10 per cent tariff on finished vehicles will also be levied.
The unexpected delay in Brexit’s timeline has also ruined contingency plans for some of the automakers.
The unexpected delay in Brexit’s timeline has also ruined contingency plans for some of the automakers. These shutdowns are usually organised far in advance in order to schedule staff holidays alongside adjustments that have to be made with suppliers, making them hard to move.
While Britain’s political leaders are dreadlocked over its exit alongside a few EU states which are questioning further departure delay, Culture Minister Jeremy Wright said that British Prime Minister Theresa May would continue talks with the opposition Labour Party to find a compromise solution.
Apart from Jaguar Land Rover, BMW’s UK Mini and Rolls Royce-Plants are shuttered this week, as is Peugeot’s Vauxhall car factory which preponed its summer shutdowns to April.
A disorderly Brexit comes at a great cost for automotive firms with imminent disruptions in the supply of parts and finished models.
Together, the aforementioned companies built over 750,000 of Britain’s 1.52 million cars last year. The country’s automotive sector reported a significant fall in sales, output and investment since 2017. Last year, JLR was compelled to cut its output plunging its sales by nearly 6 per cent to 578,915 vehicles.
At least 25 per cent of Britain’s automotive engine capacity is also closed as BMW’s central English Hams Hall factory continues a four-week shutdown while JLR’s Wolverhampton site stops production this week as part of Brexit preparations.