Brexit should not impact Jaguar Land Rover’s investment

While Prime Minister Robert Fico claims the potential departure of the United Kingdom will not impact the arrival of Jaguar Land Rover to Slovakia, the carmaker is more restrained.

The site near Nitra where the new strategic park will stand.The site near Nitra where the new strategic park will stand.(Source: SME)

British carmaker Jaguar Land Rover (JLR) does not say what impact the potential departure of the UK from the European Union would have on the construction of its plant near Nitra, the planned number of hired employees or the plans to launch construction in 2018. Brexit, however, is not mentioned among the reasons why it would leave Slovakia, the Sme daily reported.

“Jaguar Land Rover supports the stay of the UK in a reformed European Union,” Stephanie Jones, international manufacturing communications officer at JLR, told Sme. “The approach to our customers and suppliers is important for us; any changes will have an impact on our revenues, spending and crucial skills.”

The company is more restrained in its comments than Fico who said in one political talk show that the brexit will not impact the JLR investment near Nitra.

“It is a private investment, so there is no reason to fear, a step back is not possible,” Fico said in political talk show V Politike (In Politics) broadcast by the news channel TA3.

The reasons for JLR’s departure are mentioned in an investment agreement signed in December 2015. The carmaker may leave only if the exchange rate between the British pound and the euro drops significantly and stays at that level for six months, or if Slovakia leaves the European Union or the eurozone, Sme wrote.

Analysts addressed by the daily, however, do not consider these risks very probable.

There is no mention about brexit, though the agreement was prepared at the time the House of Commons in the UK passed the proposal to hold a referendum on the UK’s departure from the EU, Sme reported.

The brexit would, however, make it harder for JLR to move employees, technologies and know-how during the construction of the Slovak plant and also the launch of production. The reason is that JLR does not plan to manufacture engines in Slovakia. It will rather export them from the British Isles, Sme wrote.

The UK’s departure, however, should not impact exports.

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Theme: Automotive


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