Jaguar Land Rover Could Take $1.5 Billion Hit from Brexit
Company Halting Slovakia Plant Construction Pending Outcome of Referendum
This Thursday, the United Kingdom will vote whether to remain in the European Union or leave the trans-national economic and regulatory community. The nation is deeply divided on the issue, between those that yearn for the days of a more distinct and sovereign British identity and those that see the free trade and open migration between the rest of the European community as a net benefit. Most large multinational corporations dependent on exports and free trade have come out strongly against leaving the EU, or a so-called “Brexit.” Jaguar Land Rover (JLR), the U.K.’s largest automaker, says it could face a loss in annual profits of as much as $1.47 billion if the U.K. were to leave the EU, according to Reuters.
The company is looking at the possibility of opening an office on the European continent if the U.K. voted to leave in order to secure favorable terms with the European community. An office in Brussels, the administrative capital of the EU, could allow JLR to have a responsive lobbying force and voice to voice their concerns with EU representatives.
JLR, which recently announced its intention on building a plant in Slovakia, is putting most major pending investments on hold pending the outcome of the referendum. Earlier this month, JLR opened a production facility in Brazil, its first wholly owned plant outside of the U.K. That plant has a modest annual capacity of 24,000 units intended for Brazil and South American markets.