Bleak future if JLR shifts production

I AM getting increasingly concerned about the growing difficulties besetting British component and assembly manufacturers.

At a time of uncertainty over Brexit, it is indeed bad news to learn of the reduction in car production at JLR here in the Midlands.

It is even worse news for component suppliers who now find themselves with slashed schedules for which they have material in stock.

Bank managers tend to become very unsympathetic at such times, so CEOs have the problem of either laying off staff, or trying to win some orders that have quick delivery dates.

There is not much of this work about this autumn and I fear casualties.

I am also concerned about the longer-term prospects for JLR suppliers, for the company is planning to shift at least four models to plants in low-coast countries such as China, Austria and Slovakia.

This will result in a reduction in overall demand from British suppliers, and as a consequence, less workers required.

It is believed that over the course of the next four years, every JLR model currently produced in the UK will be duplicated overseas.

This could have the effect of reducing British production to match British demand.

Although cars manufactured in the UK have a world-wide reputation for quality and durability, sadly in the real world, it is the bottom line price that really counts, and as this can be achieved in low production cost countries, Britain will suffer.

In order to return to profitability, JLR appears to be taking the view that vehicles need to be sold in the countries where they are produced.

This leaves British car-producing plants to try and achieve the impossible and make economies in production costs.

Either way, I believe that over the course of the next two to three years, a number of car component producing companies will either have to switch to other work outside the automobile industry, or, regrettably, go to the wall. Russell Luckock is chairman of Birmingham pressings firm

AE Harris