Tory MP Owen Paterson claims a hard Brexit will be ‘good’ for Jaguar Land Rover – here’s why A senior Tory Brexiteer has batted away concerns raised by Jaguar Land Rover (JLR) over a hard Brexit by claiming […]

A senior Tory Brexiteer has batted away concerns raised by Jaguar Land Rover (JLR) over a hard Brexit by claiming it would leave Britain’s biggest car maker in a “wonderful position”.

The former Conservative minister Owen Paterson stated that manufacturers in the car industry would be “far better off” if Britain cut its ties with the European Union and reverted to World Trade Organisation rules.

This comes despite Professor Ralf Speth, JLR chief executive, became the latest major business leader to warn that a hard Brexit would cost the company £1.2bn a year and force it move abroad.

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Frictionless trade

Prof Speth cautioned that the car company needs certainty including “tariff-free access and frictionless trade with the EU” before it would invest £80bn over the next five years, including in new and electric cars.

But Mr Paterson, who has repeatedly called on Theresa May to withdraw from the EU and trade on WTO rules, contradicted the business leader, stating that such companies would save money rather than lose it under a no deal scenario.

“If we really do leave the Customs Union, Jaguar Land Rover will have access to cheaper parts and components all around the world and the European suppliers will be forced to compete or they will lose Jaguar Land Rover’s business,” told the BBC.

By leaving the customs union, the single market and European Court of Justice (ECJ) would put JLR in a “wonderful position to compete world wide because they would be able to buy components cheaper around the world”, he added.

Not feasible

Mr Paterson also appeared doubtful over Mrs May’s ability to secure an agreement from her Cabinet as well as Brussels over her plans for a “third way” on a future customs deal, called the Facilitated Customs Arrangement.

“I don’t think it is feasible for the Government not to deliver the verdict of the referendum, which is endorsed by 85 per cent of the votes of Conservative and Labour parties in the general election to leave the customs union, leave the single market and leave the ECJ,” he said.

The former Environment Secretary’s decision to explain the car industry to the chief executive of Britain’s biggest car maker raised eyebrows on social media.

Owen Paterson inexplicably invited on #r4today to discuss Jaguar Land Rover. Brexsplains to JLR that Brexit will allow them to source cheap parts from around the world, as if they're a small garage chain. No idea what a Just-In-Time supply chain is. Why bother talking to him? — quiddany (@quiddany) July 5, 2018

The sooner we accept that Owen Paterson & Jacob Rees Mogg know much more about running Jaguar Land Rover than the bloke who runs Jaguar Land Rover, the better for all concerned. https://t.co/kdrkOxzd8h — James O'Brien (@mrjamesob) July 5, 2018

I’m sure Owen Patterson knows more about how to run a car manufacturing supply chain than those busy body “experts” at Jaguar Land Rover. — Reality Bites in 2019 ???????????????????????????????????? (@DanRealityBites) July 5, 2018

It followed Prof Speth raising fears that it would have to move its operations outside of the UK if it faced tougher trading environment.

He said: “I don’t want to threaten anybody, but we have to make transparent the implications of the move. “We want to stay in the UK. Jaguar Land Rover’s heart and soul is in the UK.”

“We have to decide whether we bring additional vehicles, and electric vehicles with new technology with batteries and motors into the UK.”

His warnings follow in the wake of similar concerns by Airbus and BMW. The company employs more than 40,000 people in the UK and supports at least 300,000 more in the supply chain.

Its exports are worth £18bn annually, with a fifth of its cars going to Europe and 40 per cent of its parts coming from the Continent.

Need greater certainty

The firm has spent £10m on Brexit contingency plans already and Mr Speth said leaving the UK would be a last resort to “save the company”.

But he added: “We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees.

“A bad Brexit deal would cost Jaguar Land Rover more than £1.2bn profit each year.

“As a result, we would have to drastically adjust our spending profile; we have spent around £50bn in the UK in the past five years – with plans for a further £80bn more in the next five.