BREXIT is the thing now and no matter how cheesy it may sound, we have to live with it for the rest of our lives. In what is called the biggest and one of its referendum of its own kind, the citizens of Great Britain have opted themselves out of the European Union, hence declaring the U.K as a self-sustained powerhouse in Europe.
Britain Exit, or Brexit as it is known as, has created quite a turmoil in the financial markets, as well as various other forms of businesses, including our own automobile manufacturing sector. Before the Brexit was a reality and voting was to begin, Jaguar-Land Rover, the manufacturer of luxury sedans and SUVs ardently opposed the exit of U.K from EU and campaigned in support of UK to stay in the EU.
Many analysts and financial gurus predicted a financial loss as high as $1 billion for the JRL if Brexit becomes a reality. But it seems like the Tata owned group is taking no hard hitting from the Brexit and has announced that its business will run as usual and the long term investment plans in the UK will not be affected by Britain deciding to exit the EU.
A JLR company spokesperson stated after the results of referendum to exit the EU that, "We are a British business with a strong manufacturing base in this country, we call Britain home and we remain committed to all our manufacturing sites and investment decisions." The undisclosed person further added that JLR is assessing the situation right now and respects the voters’ decision.
The person also said that the exit won't have any immediate effect on the company's business or on the British automotive industry in general. Jaguar-Land Rover has a plan to invest 500 million pounds for the expansion of its global headquarters in Whitley after the approval from the government. The new HQ will generate an estimated 2000 new jobs in addition to the existing work force of 5,600.
While the above mentioned jobs will be for the manufacturing division, the expansion will also generate 500 construction jobs for building the infrastructure. Jaguar-Land Rover is also involved in the negotiation process of the U.K leaving the EU and is ensuring that the British automotive industry is taken into account at each and every step.
According to an estimate, around 80% of the cars manufactured in the UK are exported and out of these, 60% alone goes to Europe. JLR maintains its line that the UK needs to safeguard its automotive industry’s interests during the negotiation process.
We are keeping a keen eye on any development related to the Brexit and automotive industry and will keep you updated.