Jaguar Land Rover anticipates £500m Brexit tariff

Source: --- Thursday, May 21, 2020
JLR is aiming to reopen some factories on 18 May British firm expects to pay huge sum in parts tariffs if Britain leaves Europe without a deal Jaguar Land Rover’s chief financial officer has admitted that if the UK “crashes out” of the EU with no deal, it would cost the firm £500 million per year in tariffs on parts imports alone. Autocar found the remarks in a record of a meeting between Adrian Mardell and investment banks at the end of January. Mardell said he “fully expects” the current transition period to last until 1 January 2021, after which there will be “a different relationship”. Mardell also said: “We’ve gone through two versions of potential crash-outs already, in the end of March [2019] and the end of October, and what we did was to protect ourselves by closing the plant for a week. “We’ll decide at the back end of this calendar year whether that’s an appropriate measure. If we do crash out, if we go to WTO [World Trade Organization rules]… it’s about a £500m duty hit – £40m a month.” It’s rare for a senior figure at a major car maker to quantify the cost of a no-deal Brexit and resultant use of WTO rules. But Mardell also reckons that if the UK does find itself in this situation, it won’t be for long. “I don’t personally believe that we’d really be at those WTO levels for a significant period of time,” he said. “I think it would be a negotiating position which is negotiated away by one side or the other. I’m much m ...

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