Daily Management Review

May's Draft Brexit Deal Is Better Than No Deal, Says Rolls-Royce Chief


11/19/2018




May's Draft Brexit Deal Is Better Than No Deal, Says Rolls-Royce Chief
The chief of engineering giant Rolls-Royce said that a "practical plan" for Brexit needs to be supported by politicians.
 
Any deal with the European Union was better than a no deal Brexit because time to strike a deal is running out, said Warren East, chief of Rolls-Royce.
 
Rolls-Royce makes aerospace, marine and submarine engines  and employs about 22,300 people in the UK.
 
The draft Brexit deal plan that was put forward by British Prime Minister Teresa May was backed by East as has been done by other business leaders.
 
"The time since the referendum seems to have gone remarkably quickly and we're essentially [still] having a discussion we could have had the morning after the referendum," he said in an interview to the media.
 
"We are slightly running out of time and I would, as a business leader, like to see politicians on both sides of the fence get on and negotiate a practical deal that works for business", he said.
 
Similar to a large number of engineering companies that operate in Britain, Rolls-Royce too has a robust supply chain in the EU region which operates in the so called "just-in-time" delivery mechanism supplying thousands of parts and dependent on its smooth functioning across the Channel.
 
A call for "as little change as possible" from Brexit for minimal impact on business was given earlier in the year by East. The company has taken up a strategy of stockpiling the necessary parts for its production to shield itself from any negative impact of Brexit which can hamper its ‘just-in-time’ supply chain and production system.
 
And to ensure that the company does keep operating even after March 29, 2019, it would continue with its strategy of purchasing and stockpiling of parts, he said.
 
May’s draft plan for Brexit was has been lend support by other business leaders of the country after a conference call between executives and the Chancellor, Philip Hammond, which was set up to garner industry support for the plan.
 
But the draft plan and the political uncertainty saw the pound being hit on Thursday because of fears among investors that the parliament would not back the draft Brexit plan of May. They were also spooked by a number of resignations of ministers which they believe could put the government at risk of falling down.
 
On the other hand, industry executives and CEOs have very little alternative but to get prepared for a number of post Brexit scenarios because of the uncertainty about the draft bill getting parliamentary approval and whether there would be any deal at all between the UK and the EU or whether there would be a general elections in the UK because of the current political upheaval.
 
The draft was termed as a "positive step in the right direction" by BMW but also said that its strategy of preparing itself for "the worst-case scenario, which is what a no-deal Brexit would represent" would continue.
 
"Most business people ultimately are pragmatists and this is about playing the cards we have been dealt rather than wishing for a better hand," Sir Roger Carr, chairman of BAE Systems, told the media.
 
(Source:www.bbc.com)






Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”