Jaguar Land Rover (JLR) has become the latest firm to warn of the costs of losing frictionless trade between the UK and EU.
JLR said more than 40% of parts going into cars built in the UK were imported from Europe and it spent £5.37bn with EU suppliers in 2017-18.
The company said its Solihull plant built 1,500 cars per day using 15m components and any delay to parts delivery would suspend production, at a cost of £1.25m per hour.
Ralf Speth, CEO of JLR, said: “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.
“We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees.
“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; we have spent around £50bn in the UK in the past five years – with plans for a further £80bn more in the next five. This would be in jeopardy should we be faced with the wrong outcome.”
Along with its 40,000 UK employees, JLR said it supported a further 260,000 jobs in the UK supply chain. It spent £5.67bn with UK suppliers in 2017-18. Manufacturing is centred in the UK with additional plants in China, Brazil, Austria and Slovakia.
In 2017 the firm sold 621,000 cars, with 20% being sold in mainland Europe.
“If the UK automotive industry is to remain globally competitive and protect 300,000 jobs in Jaguar Land Rover and our supply chain, we must retain tariff and customs-free access to trade and talent with no change to current EU regulations,” said Speth.
Airbus has warned its future in the UK is threatened by a no-deal Brexit.
☛ Want to stay up to date with the news? Sign up to our daily bulletin.