Jaguar Land Rover chief executive Ralf Speth has warned that a ‘no deal’ Brexit could cost Britain’s biggest car manufacturer £1.2 billion a year, effectively wiping out profits.
He also predicted tens of thousands of job losses in the sector if agreement with Brussels cannot be reached.
The gloomy predictions are based on anticipated increased costs and border delays, which Speth says would prevent Jaguar Land Rover from building its vehicles on time and to budget.
Speth’s comments reflect the continued Brexit uncertainty that businesses, small and large, across the UK are feeling with concerns primarily centred on free and frictionless trade, as well as employment and immigration.
The response of many business owners has been to batten down the hatches, halt investment and wait to see what happens. Others have reacted by opening factories in the EU to guarantee their business continuity regardless of the outcome of the negotiations.
Uncertainty can make scenario planning seem like an impossible task, but in my experience, the sooner businesses can start to consider the likely implications of Brexit, the easier it will be to respond to whatever deal (or ‘no deal’) the UK ends up with.
A great starting point is to:
- Review your commercial contracts and ensure new contracts are drafted in a way that minimises your Brexit risk.
- Review all international supply agreements that might attract import and export costs.
- Look at your supply chains to ensure key suppliers have business continuity plans.
- Identify employees who work in the EU and may face visa requirements or those who have been recruited from the EU and might need to apply for a registration certificate.
Beswicks Legal has a team of Brexit experts who can guide you through the steps you need to take to carry out your Brexit impact analysis. If you need advice on commercial contracts, intellectual property, data protection, or employment and immigration in light of Brexit, call 01782 205000 or email firstname.lastname@example.org