Brexit related issues, including increased tariffs and the customs checks could have widespread ramifications across JLR’s supply chain and significantly increase it costs.
The CEO of Britain’s biggest carmaker Jaguar Land Rover has disclosed it requires more clarity on Britain’s terms of exit from the European Union before it can decide whether it can produce electric cars in Britain.
JLR which makes just under one in three of Britain’s 1.7 million cars at its three factories is constructing its new I-PACE electric model in Austria.
The uncertainties surrounding Brexit, especially the potential imposition of customs checks and tariffs which could have widespread implications on its supply chain and add to production costs are the areas which would require heightened clarity.
“That makes the decision this year very, very critical and I don’t know whether we can make it,” said Ralf Speth, CEO of JLR-Britain, at the Geneva Motor Show.
Both, London and Brussels hope to agree on a a transitional deal by this month in order to maintain an unfettered and free trade upto the end of 2020.
A long term agreement is to be hammered out during Brexit negotiations by the end of this year.
When asked whether Brexit was a Speth said, “We are waiting for these kinds of decisions. It goes without saying because uncertainty is really challenging us very much and not only us, it’s for the complete industry.”
“You hardly see inward investment any more or every decision is taking longer from every faculty. Therefore it would be … appropriate to get more information about these kinds of deals.”