The CEO of Jaguar Land Rover has warned that key industries will be destroyed by a hard Brexit.
Last month it was reported that the U.K. is making preparations in case a Brexit deal doesn’t go through by the March 2019 deadline. In July, Brussels rejected the U.K.’s proposals on how to govern London’s access to the European market after Brexit, saying that British Prime Minister Theresa May’s latest plan would take away the EU’s “decision-making autonomy.” The uncertainty means many in the U.K. are preparing for the chance that there might not be a deal in place before the deadline.
According to The Guardian, Ralf Speth, the boss of Jaguar Land Rover, said that outcome would lead to the closure of plants and major job losses, adding that some exposed industries would have “no way to survive a hard Brexit.”
“Everybody can do the maths. It is very open and very transparent. It is not only at Jaguar Land Rover, but it is also an element for the supplier industry and export industry in the U.K.,” he said. "It will be very, very critical if we see a hard Brexit or no deal. Companies will disappear, plants will be closed. There’s no way to survive a hard Brexit for many industries. But I hope again that the politicians see it and act for the benefit of their own population.”
Hague added that May was at the most difficult moment of her leadership. “That’s the realistic situation,” he said. “If everybody sticks to their current position, a deal won’t happen. There isn’t at this moment a majority in parliament.”
In a recent survey, 80 percent of companies reported that Brexit has had a negative impact on investment decisions, while almost two-fifths (39 percent) said they would launch contingency plans if there was no clarity by next month. In addition, most companies said they would implement damaging contingency plans if there was no certainty over a Brexit deal by December.