Street reveals fears for carmaker after week of uncertainty
WEST Midlands mayor Andy Street has warned MPs they must agree a withdrawal deal with the European Union in order to save jobs at Jaguar Land Rover.
It follows reports that the carmaker, which employs thousands at plants in Birmingham and Solihull, is planning to cut up to 5,000 jobs.
The Tory mayor said support for Theresa May’s proposed Brexit withdrawal agreement, which the Prime Minister is to put to a Commons vote in the week commencing January 14, would “remove some of the clouds that are hanging around JLR at the moment.”
Mr Street said he had been in contact with senior Jaguar Land Rover (JLR) managers in recent days, and described the reports as “rumours”.
But he said: “It is very concerning. Because they have obviously been the dynamo of the regional economy, and if it were to be true it would be extremely bad news.
“Even in all of the material that was rumoured, their commitment to further investment in the West Midlands was very clear.
“The other thing that was really clear is that if we get a firm decision around Brexit, that will remove some of the clouds that are hanging over JLR at the moment.
“I have been a fervent supporter of what the Prime Minister is doing, significantly because it will support our manufacturing industry in the West Midlands. I’m hugely concerned, but there are some things that can happen to lift those clouds early in the new year.”
Mrs May last week delayed a planned Parliamentary vote on the proposed Brexit withdrawal agreement, admitting that it was certain to be rejected by the House of Commons. She is attempting to persuade the EU to change the proposals so that they are more likely to win support from MPs.
But in the meantime, the Government is stepping up preparations for a “no-deal” Brexit.
Mr Street said he had warned Gov- ernment Ministers that this could have a disastrous affect on West Midlands manufacturers, and highlighted an event bringing together Conservative chair Brandon Lewis and local JLR suppliers.
“We hosted a round table for Brandon Lewis, as a very senior member of Theresa May’s team, with JLR suppliers.
“And they laid out very clearly what the consequences of a no-deal Brexit could be.
“That’s the type of practical thing that can be done to influence decision-makers in the government.
“We’ve done that sort of thing a lot.”
Economic forecasts suggested the West Midlands economy would be ten per cent smaller if the UK left the EU without a deal, compared to leaving with Mrs May’s deal, he said.
“Bluntly, although I am a firm believer that we have to deliver Brexit, that’s what the people of this region voted for, we have to deliver it in a way that does not bring about the no-deal consequence.
“The actual estimate is the difference is a ten per cent hit to the economy. “That’s a very substantial impact.” Mr Street said he did not support calls for a second referendum or “people’s vote” on Brexit.
But he said there could be a case for delaying Brexit, due to take place on March 29, if that was the only way to avoid leaving with no deal.
“If that is the difference between getting a good deal and not then I would be pragmatic over that,” he said. “But I think there is some power at the moment in the fact that the deadline is coming, and we have to get a deal by that deadline.”
The Tory mayor said he had spoken frequently over the past year to Ralf Speth, the chief executive officer of JLR, and to “people extremely close to him” this week.
It has been reported that JLR is to announce thousands of job cuts in the new year as part of a £2.5 billion savings plan, as a result of Brexit, falling sales in China and a drop in demand for diesel cars.
Mr Street said: “Those particular reports are rumours. I do not believe that is a leak from the company.
“But what we can’t disguise is they have a serious reduction in their sales volume, and a business is going to have to think very hard about how they respond to that.
“And what they have said is that there will have to be a programme to get their revenue line and their cost line back into line.
If we get a firm decision around Brexit, that will remove some of the clouds that are hanging over JLR Andy Street