
English: 
Jaguar Land Rover has
warned that a hard Brexit
would make it very difficult to
continue operating in the UK.
The company said the potential
for paying tariffs could set it
back 1.2 billion pounds
a year, wiping out
the company's entire
profit, and forcing
it to look outside
Britain for manufacturing
options in the future.
JLR's the latest carmaker
to warn about this.
BMW, Honda, Toyota,
and others have all
said that a Brexit - a hard
Brexit season paying tariffs
- could make their
UK manufacturing
operations very hard to
sustain in the long term.
Now all the carmakers in
Britain are worried about this.
The reason is not
just the potential
for paying tariffs on
their cars that they
export, but huge disruption
to their supply chain.
All of Britain's
car plants operate
on what's called a just in
time delivery system, where
the components arrive at the
plant hours - and sometimes
minutes - before they're
needed on the line.
More than half of
those components
are imported, many of
them from mainland Europe.

English: 
[MUSIC PLAYING]
Jaguar Land Rover has
warned that a hard Brexit
would make it very difficult to
continue operating in the UK.
The company said the potential
for paying tariffs could set it
back 1.2 billion pounds
a year, wiping out
the company's entire
profit, and forcing
it to look outside
Britain for manufacturing
options in the future.
JLR's the latest carmaker
to warn about this.
BMW, Honda, Toyota, and others
have all said that a Brexit--
a hard Brexit season
paying tariffs--
could make their UK
manufacturing operations
very hard to sustain
in the long term.
Now all the car makers in
Britain are worried about this.
The reason is not
just the potential
for paying tariffs on
their cars that they
export, but huge disruption
to their supply chain.
All of Britain's
car plants operate
on what's called a just in
time delivery system, where
the components arrive
at the plant hours--
and sometimes minutes-- before
they're needed on the line.
More than half of
those components
are imported, many of
them from mainland Europe.

English: 
Right now they travel
across the border freely
and without checks.
But any Brexit that sees them
stopped for customs, checks,
could delay that supply
chain, and totally
tear up the model that the
manufacturers have been
used to for the last 30 years.
Ultimately, for all the
car plants in Britain,
this comes down to
competitiveness.
All of the car plants
around the world
compete for work every time a
manufacturer makes a new model.
Right now, Britain wins
a lot of that work.
We have some of the best
car plants in the world.
But anything that puts those
plants at a disadvantage
makes it less likely that future
work will come to Britain.
And tariffs of 10% on
exported vehicles--
that's what the car makers
would have to pay under WTO--
that puts the car plants at
a significant disadvantage
to rival plants in Europe
and further afield.
[MUSIC PLAYING]
Recently Jaguar Land Rover
moved the whole production
of its Land Rover
Discovery vehicle
to a brand new
plant in Slovakia.
That plant has the capacity
to make hundreds of thousands

English: 
Right now they travel
across the border freely
and without checks.
But any Brexit that sees them
stopped for customs checks
could delay that supply
chain, and totally
tear up the model that the
manufacturers have been
used to for the last 30 years.
Ultimately, for all the
car plants in Britain,
this comes down to
competitiveness.
All of the car plants
around the world
compete for work every time a
manufacturer makes a new model.
Right now, Britain wins
a lot of that work.
We have some of the best
car plants in the world.
But anything that puts those
plants at a disadvantage
makes it less likely that future
work will come to Britain.
And tariffs of 10%
on exported vehicles
- that's what the carmakers
would have to pay under WTO
- that puts the car plants
at a significant disadvantage
to rival plants in Europe
and further afield.
Recently Jaguar Land Rover
moved the whole production
of its Land Rover
Discovery vehicle
to a brand new
plant in Slovakia.
That plant has the capacity
to make hundreds of thousands

English: 
of cars a year, and
JLR could very easily
send more work there.
Almost all of the big
manufacturers in Britain
have other plants in Europe
where they could divert work
if manufacturing in Britain
becomes uncompetitive
in the future.
[MUSIC PLAYING]
Advocates of Brexit
say that leaving
would free the car makers
to do deals around the world
and export without tariffs.
The problem is Britain has
been a member of the EU
for a long time.
Many of the car plants
in Britain were built--
especially by the Japanese
manufacturers-- as
export bases to Europe.
Britain exports 80% of
all the cars it makes.
[MUSIC PLAYING]
The problem of
tearing up the system
is that it's been
so well-established.
It's very difficult to
repurpose Britain's factories
to make cars to
sell to other places
without doing serious damage
to the existing supply chain,
and the existing business models
on which many of these car
plants are built.

English: 
of cars a year, and
JLR could very easily
send more work there.
Almost all of the big
manufacturers in Britain
have other plants in Europe
where they could divert work
if manufacturing in Britain
becomes uncompetitive
in the future.
[MUSIC PLAYING]
Advocates of Brexit
say that leaving
would free the car makers
to do deals around the world
and export without tariffs.
The problem is Britain has
been a member of the EU
for a long time.
Many of the car plants
in Britain were built--
especially by the Japanese
manufacturers-- as
export bases to Europe.
Britain exports 80% of
all the cars it makes.
[MUSIC PLAYING]
The problem of
tearing up the system
is that it's been
so well-established.
It's very difficult to
repurpose Britain's factories
to make cars to
sell to other places
without doing serious damage
to the existing supply chain,
and the existing business models
on which many of these car
plants are built.
