“If we face higher tariffs than anybody else then it’s quite clear that it’s reducing the competitiveness of our products especially in Europe,” he said. “The order of magnitude cannot be calculated right now.” Two sources told Reuters in June that the firm estimates its annual profit could be cut by 1 billion pounds ($1.3 billion) by the end of the decade if Britain returned to WTO tariffs of 10 percent, according to internal documents. FUTURE INVESTMENT? Speth also raised concern that some European consumers might be shunning British brands in the wake of the Brexit vote, referring to comments by European sales representatives. “They have the very first customers in their showrooms (who) clearly highlight that they don’t want to buy British products any more,” he said. Any blow to the British car industry, which was dogged by wild-cat strikes and poor productivity in the 1970s and 1980s, could undo years of recent progress with output currently expected to reach a record high of 2 million by 2020. JLR said its long-term investment strategy has not changed as a result of the vote but the firm would now have to think again after Britons backed leaving the European Union on June 23. “We have to realign all of our thinking and work on how to handle this Brexit best,” Speth said. Asked if that included investments, he replied: “Everything.” Over 800,000 jobs depend on Britain’s overwhelmingly foreign-owned car industry and big carmakers backed continued membership during the campaign, seeing benefits from open trade and standardised rules. Britain’s car industry body the Society of Motor Manufacturers and Traders warned on Friday that a lack of clarity over a potential deal risked future growth. “The current uncertainty is not conducive to attracting manufacturing investment to the UK,” Chief Executive Mike Hawes said.
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