Jaguar Land Rover has warned that 40,000 jobs in the UK are at risk if the United Kingdom leaves the European Union without a strong free trade deal.
The UK’s largest automaker recently told the government that the lack of a trade deal with the EU could force it to leave the country due to a possible 1.2 billion pound ($1.59 billion) rise in tariff costs.
“We, and our partners in the supply chain, face an unpredictable future if the Brexit negotiations do not maintain free and frictionless trade with the EU and unrestricted access to the single market,” JLR chief executive Dr Ralph Speth said.
“We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees.”
Alongside the 40,000 people directly employed by Jaguar Land Rover in the country, there are an additional 260,000 jobs associated with its supply chain.
“A bad Brexit deal would cost Jaguar Land Rover more than £1.2bn profit each year. As a result, we would have to drastically adjust our spending profile,” Speth added.
During an interview with the Financial Times, Speth went on to say that if the UK doesn’t reach an adequate post-Brexit deal, the automaker will have have to close local plants.
Sky News reports that Prime Minister Theresa May says large companies are being listened to in discussions relating to the country’s exit from the EU.
In June, BMW offered up a similarly dire warning about its business if no Brexit deal is reached. Like Jaguar Land Rover, BMW said it would have to close its Mini and Rolls-Royce production facilities.