Jaguar Land Rover to close plants for a week as a Brexit safeguard

[ENGLAND] Jaguar Land Rover plans to close its UK factories for a week in November to guard against disruption from a possible no-deal Brexit, Chief Executive Officer Ralf Speth said.

The shutdown will go ahead whether or not Britain seeks an extension to the Oct 31 deadline for leaving the European Union, Mr Speth said at a briefing at JLR's new technical center in Gaydon, England.

The decision means the unit of Tata Motors Ltd will lose production after its usual August maintenance closure was brought forward to April as part of preparations for the original March 29 Brexit date. That measure proved to be in vain after the deadline was shifted to October when parliament failed to approve the government's exit plan.

JLR uses about 20 million parts a day that are supplied on a just-in-time basis, many of them from mainland Europe. Some forecasts predict that a no-deal exit would lead to transport snarl-ups, especially at the port of Dover, that would leave UK carmakers unable to function for more than a few days.

BLOOMBERG