British car manufacturers may find their profits take a tumble as a result of Brexit, with the CEO of Jaguar Land Rover (JLR) now saying that some customers in Europe could be boycotting British vehicles because of the vote result.
Ralf Speth said that the company would now be revising its thinking with regards to investment after the vote to leave, adding that if Nissan was given a compensation deal post-Brexit then other manufacturers would need to see the same advantages, the Guardian reports.
He went on to say that JLR would fare particularly badly if Brexit doesn’t go well, with tariffs on important parts and exported cars, as well as technology, likely to hurt competitiveness. Mr Speth did, however, say that new investments like an electric car plant in UK would be possible if the conditions were right.
“We are the only car manufacturer in the UK to do all the work in terms of research, design, engineering, production planning in the UK. We want to have fair treatment and a level playing field at the end of the day,” Mr Speth was quoted as saying.
A new report from credit ratings agency Standard and Poor’s has suggested that Brexit will not give UK exports the big boost that many Leave supporters believe it will. The argument is that the drop in the pound that has been seen since the vote won’t be so bad since it will help support UK exports as other countries seek to buy cheap goods from the UK. However, S&P has indicated that the impact won’t be as big as some are now hoping.
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