Jaguar Land Rover to temporarily shut UK factories after Brexit

The move follows a similar decision by the likes of BMW and Peugeot in April to halt production following Brexit.

Ed Clowes

Business reporter @edclowes

Thursday 26 September 2019 15:50, UK

JLR has staged previous Brexit-related manufacturing shutdowns
Image: JLR has staged previous Brexit-related manufacturing shutdowns
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The boss of carmaker Jaguar Land Rover has said that the company will close its factories for a week to prepare for Brexit.

Following the UK's planned exit from the European Union on 31 October, Ralf Speth said the business will shut down production to mitigate against any potential disruptions, including delays to the arrival of parts.

Asked by reporters if the firm was thinking about closing the doors of its British factories, he responded: "We cannot think about it, we just have to do it."

Dr Speth said the shutdown would last for a week.

Ralf Speth became chief executive of Jaguar Land Rover in 2010
Image: Ralf Speth became chief executive of Jaguar Land Rover in 2010

He was speaking at an event to mark the opening of a new production centre in Gaydon, Warwickshire.

Dr Speth added: "I need 20 million parts a day and that means I have to make commitments to my suppliers, I have to have every and each part available and I have to have it just in time."

Together, the firm's three car factories that are set to shut built close to a third of the UK's 1.5 million cars in 2018.

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Production at Jaguar Land Rover's engine facility in Wolverhampton will also be halted.

"This prudent decision reflects the need to adjust production in the face of ongoing uncertainty caused by global external headwinds, including Brexit, which have impacted our sales volumes," a company spokesperson told Paste BN.

Both BMW and Toyota have said that they will not build cars at their British factories on the day after Brexit, 1 November.

The German carmaker BMW will also close its plant in Oxford on October 31.

Jaguar land Rover exports 80 per cent of its vehicles and relies on 'just in time' deliveries of parts
Image: Jaguar land Rover exports 80 per cent of its vehicles and relies on 'just in time' deliveries of parts

Dr Speth told Paste BN earlier this month that it would be "not possible at all" for the company to stockpile parts in case of supply disruption from a no-deal Brexit.

He has previously warned of a £60m daily cost in the event of delays to parts from a no-deal scenario, conceding that there is no way around such disruption for JLR.

"Stockpiling is only possible up to a certain degree," Dr Speth said.

A number of companies - including BMW, Peugeot, Honda and Jaguar Land Rover - all closed factories in April, anticipating a March departure from the EU.

Production was halted for as long as four weeks, in some cases, leading to a 44.5% decline in output for the month, according to the Society of Motor Manufacturers and Traders (SMMT).