McLaren’s fear over EU tariffs

NO DEAL HELPS NO ONE, WARNS BOSS

THE boss of supercar maker McLaren branded the risk of tariffs being imposed after a no-deal Brexit as “insanity.”

Mike Flewitt also warned just two months of disruption after the Brexit transition period ends could wipe out next year’s profit – forcing his firm to slash costs.

It comes as time is running out for a trade deal to be struck between the EU and Britain.

Without a deal by the end of the year, the UK would automatically revert to World Trade Organization rules.

McLaren imports about 60% of parts for its supercars from the EU.

Flewitt said: “The idea of tariffs is insanity. We should still be striving for free trade. If there are tariffs on EU components then we source more in the UK, but what about the European companies buying British components? They will source more in the EU. No one wins from this.” The mild-mannered Liverpudlian, who started out making Escorts on the production line of Ford’s Halewood plant, also fears the impact of delays to supplies.

He said: “Building a car you have about 3,000 components. If you haven’t got one of them, you don’t build a car.”

He warned the added costs could see McLaren scale back investment.

It comes as pressure from the Covid-19 pandemic saw 1,200 jobs axed by the carmaker and the McLaren F1 racing team in May. McLaren expects to achieve just 60% of last year’s sales in 2020.

It has already sold all the 765LTs – its latest model – that it planned to make this year.

JOBS RISK Mike Flewitt