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The automaker, which builds nearly a third of Britain's roughly
1.67 millions cars, is also talking to warehousing companies and
has plans to stockpile parts in the event unfettered trade with
the bloc is lost.
The firm could also move its annual summer-time shutdowns to the
spring to handle any disruption from a disorderly Brexit after
Britain leaves the bloc at the end of March 2019 although no
decision has been taken.
Carmakers are triggering contingency plans to protect the
just-in-time mechanisms which see tens of thousands of cars,
parts and engines move between Britain and the continent every
day.
Jaguar Land Rover (JLR) is building its first electric car, the
I-PACE, in Austria. Asked whether the firm had settled on
whether to build electric cars in Britain, Chief Executive Ralf
Speth told Reuters:
"We haven't made the decision because we don't know at the end
of the day the final conditions and we also see uncertainty
resulting out of the Brexit discussions so we don't know where
we can do the investment best."
"At the very last moment, you can decide about the location so
there is a certain flexibility but we have used a lot of this
kind of time already so the discussions about this kind of
technologies and future locations are imminent."
The automaker has also cited the need for support from
government and academia to make sure the right infrastructure is
in place in Britain.
London and Brussels are racing to reach a Brexit agreement by
the end of the year but Prime Minister Theresa May's proposals
face opposition from both the EU and many of her own lawmakers,
who want a cleaner break from the bloc.
Speth warned that some suppliers were hesitating to invest in
Britain and that it would be "impossible" for carmakers to meet
rules of origin rules, often set at around 55 percent in
international trade deals, without the continuing inclusion of
EU components.
Speth warned that although the firm was looking at holding more
components, it would not be a simple process.
"(It's) not just stockpiling and the warehouse or the piece of
land," he said.
"You also need additional pallets, electronics, the racks, the
materials, the handling devices. It's not just I go home one
day, and there is a drawer somewhere and I open it and then I
close it again."
(Reporting by Costas Pitas, editing by Guy Faulconbridge)
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