Daily Management Review

Jaguar Land Rover to stop production in the UK because of Brexit


09/27/2019


The company intends to suspend production in the UK due to the exit of the Kingdom from the EU.



Jaguar MENA via flickr
Jaguar MENA via flickr
Jaguar Land Rover decided to suspend production in the UK because of Brexit. Four factories of the company will halt the operation in the first week of November in order to mitigate the consequences of a failure in the supply of components. At another enterprise, production will be temporarily reduced.

According to the company CEO Ralf Speth, Jaguar Land Rover needs 20 million spare parts daily, and the uncertainty surrounding Brexit puts their regular supply at risk.

“We can't think about it, we just have to do it,” Speth added.

Jaguar is not the only company fearing supply disruptions: Toyota announced a forthcoming production shutdown in August. BMW is planning to pause on October 31.

Boris Johnson promised to withdraw the country from the European Union with or without a deal on October 31, and the latter option carries a lot of risks for the British industry. The lack of an agreement could disrupt the supply chain, and therefore, hit production. However, the question of whether Brexit will take place at all remains open.

source: bbc.co.uk






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