Jaguar shortens working week in Britain
Author: Mario Schmidtgen
Preparation for the consequences of Brexit
In the course of the Brexit, the British car manufacturer Jaguar is now preparing for difficulties. The working week will be shortened from the beginning of October at the plant in Castle Bromwich. Then cars will only be produced three days a week, according to the company. This is how the carmaker wants to prevent layoffs. Due to “headwinds for the car industry” Jaguar makes “temporary adjustments” to the production.
Company boss Ralf Speth had already announced the consequences of a disorderly Brexit. Jack Dromey, member of the opposition Labor Party in the British House of Commons, blamed the government at Twitter for the “Brexit chaos and the wrong handling of the transition away from diesel”.
In addition to the industrial companies, the first banks are now also preparing for a Brexit without an agreement. “The financial system is already assuming that there will be no agreement” says Sergio Ermotti, head of the Swiss UBS. “Whatever happens from now on, it will not make the effort less expensive. UBS estimates the costs associated with Brexit to around CHF 100 million. Deutsche Bank also steels themselves and outsources large parts
Meanwhile, even the government in London and the International Monetary Fund (IMF) warned that the exit from the European Union would become disorderly and particularly harmful for the economy. IMF Director Christine Lagarde fears that the British economy will shrink due to the considerable costs instead of growing. British Prime Minister Theresa May also recommends maintaining close relationships with EU trade.
If a “no deal Brexit” occurs, Great Britain will leave the EU on 29 March 2019 without a withdrawal agreement. As a result, the British will leave the EU’s internal market and customs union, which will have a significant impact on trade. Banks will also lose their EU financial passports for cross-border financial transactions. A disorderly withdrawal would also have an impact on the EU states, but not as much as on Great Britain.
The economy therefore hopes that a consensual Brexit with a transitional period and a free trade agreement will be agreed. The withdrawal negotiations have been ongoing for months and have not made any progress since then. It remains to be seen whether May will receive the necessary approval from the British Parliament for a Brexit deal with the EU.