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Business

Land Rover says Brexit could cost it £1bln

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Opening sequence

Business

Land Rover says Brexit could cost it £1bln

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COMING UP:Land Rover says Brexit could cost it £1bln

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Transcript

00:00:00
>> Jaguar Land Rover estimates Brexit could cut its annual profits by £1.0 billion. Sources telling Reuters that the figure is in documents prepared by the car maker's chief economist. The fast growing firm may also be planning a big shift in strategy. Reuters UK correspondent Costas Pitas.>> They're also looking into the possibility of opening an office in Europe, potentially in Brussels, according to the two sources.
00:00:26
And also, a deal to take over Silverstone that they're working on and major expenditure on a plant in Slovakia, which they're already announced, are both on hold until the referendum outcome is known.>> JLR says it has looked into the costs of Brexit, but it won't confirm any figures, or take a side in the debate.
00:00:45
If it did suffer as a result of Brexit, that will be bad news for the entire UK car industry. JLR accounts for one in three of all vehicles made here and supports thousands of small suppliers. Other pillars of British industry are more open in their calculations.>> Rolls Royce, the aerospace group, not the car company, actually told their workers last week in a letter that potential future investments could be delayed or, maybe, not happen if there is a break, so other companies are clearly looking into these eventualities.
00:01:21
>> JLR has said that it will keep its headquarters in the UK, whatever happens, but Thursday's vote may decide just how many cars it makes in this country and how many British workers are needed to build them.