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JLR job cuts are taste of things to come without right deal on EU trade

Posted by Warwick Business School at 22 January 2020, 22:30 CET |
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In response to news that Jaguar Land Rover (JLR) will cut 500 jobs at its Halewood factory, Christian Stadler, Professor of Strategic Management and an automotive industry expert at Warwick Business School, said:

"These cuts are not entirely surprising, as they are part of 4,500 jobs losses that JLR previously announced as part of a transformation process to help it compete in a challenging marketplace.

"However, they come at a bad time for UK car manufacturing, with JLR posting a 6 per cent fall in sales during 2019 amid lower demand from China and fewer diesel sales in Europe.

"This could be just a taste of things to come if the Government proceed with their recent announcement that they will not pursue regulatory alignment with the EU after Brexit.

"Car parts move back and forth across the English Channel several times during the production process. Unless that remains as frictionless as possible, UK manufacturers will find it increasingly difficult to compete.

"This should come as no suprise to the Government. JLR has been outspoken about what that will mean for the British car-making industry. It has also expanded its facilities in the Czech Republic in recent years.

"If the UK Government makes trade with the EU too difficult, it would be logical for JLR to expand further on the continent, rather than in the UK."

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