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You can find the current article at its original source at https://www.theguardian.com/business/2018/jul/06/government-has-no-clue-how-to-execute-brexit-without-harm-airbus-chief
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Government has no clue how to execute Brexit without harm – Airbus chief | Government has no clue how to execute Brexit without harm – Airbus chief |
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The Airbus chief executive, Tom Enders, doubled down on the aerospace giant’s warning that it could pull out of the UK in the event of a hard Brexit, accusing the government of having “no clue” on how to leave the EU. | The Airbus chief executive, Tom Enders, doubled down on the aerospace giant’s warning that it could pull out of the UK in the event of a hard Brexit, accusing the government of having “no clue” on how to leave the EU. |
Speaking at the company’s briefing in London before the Farnborough air show, Enders said: “The sun is shining brightly on the UK, the English team is progressing towards the [World Cup] final, the RAF is preparing to celebrate its centenary and Her Majesty’s government still has no clue, no consensus on how to execute Brexit without severe harm.” | |
His comments come as the cabinet meets at Chequers to thrash out disagreements within the government over the Brexit deal the prime minister will propose to Brussels. | His comments come as the cabinet meets at Chequers to thrash out disagreements within the government over the Brexit deal the prime minister will propose to Brussels. |
Enders said Airbus, which employs 14,000 people in the UK and supports a further 100,000 jobs in its supply chain, was already taking action to prepare for all types of Brexit, including a worst-case no-deal scenario. | |
“Rest assured that we are taking first preparations as we speak in order to mitigate consequences from whatever Brexit scenario may follow,” he said. | “Rest assured that we are taking first preparations as we speak in order to mitigate consequences from whatever Brexit scenario may follow,” he said. |
“Brexit in whatever form, soft or hard, light or clean, whatever you call it, will be damaging for industry, for our industry and damaging for the UK, whatever the outcome will be.” | “Brexit in whatever form, soft or hard, light or clean, whatever you call it, will be damaging for industry, for our industry and damaging for the UK, whatever the outcome will be.” |
Enders said uncertainty over Brexit was “very discomforting” and it was the company’s duty to its shareholders to speak up about the issue. | Enders said uncertainty over Brexit was “very discomforting” and it was the company’s duty to its shareholders to speak up about the issue. |
“Let’s see what comes out of Chequers: white smoke, black smoke or no smoke,” he added. | “Let’s see what comes out of Chequers: white smoke, black smoke or no smoke,” he added. |
He warned about the possibility of the UK leaving the European Aviation Safety Agency, which he said would see the process by which parts are certified for use in aircraft fall apart. | |
“That could be a very troubling situation that could eventually lead to a standstill of production. | |
“After all the time that has been spent and lost on this process – and the situation being as it is – that’s not a scenario we can exclude.” | |
Guillaume Faury, the president of the commercial aircraft division of Airbus, said the company was already asking parts suppliers to ramp up production but warned many would struggle to do so. | |
The request is intended to ensure Airbus has enough parts in reserve to last for three months if a no-deal Brexit slows down the movement of components across borders. | |
“Let’s assume we want a three-month buffer for UK suppliers of parts to aeroplanes in France and Germany,” he said. | |
“They have to start producing 35% more parts during the next nine months to prepare just a three-month buffer, to give time to adapt. Most suppliers are at max production already today.” | |
After Enders refused to comment any further on Brexit, it was left to Faury to say that Airbus was not bluffing about the possibility of winding down investment in the UK. | |
“You bluff when there is a benefit for bluffing,” he said. “We went public because we see the risks growing and we need decisions. We need clarity to prepare ourselves.” | |
Airbus was joined this week by Jaguar Land Rover (JLR), the UK’s largest carmaker, and Rolls-Royce in voicing concern about the dangers of a hard Brexit. | |
JLR said a bad Brexit deal would force it to reconsider £80bn of investment planned for the UK, putting 40,000 jobs at risk. | |
Carmakers including Nissan, BMW and the Vauxhall owners, PSA – as well as the industry trade body, the Society of Motor Manufacturers and Traders – have also voiced concern about the lack of clarity on the terms of the UK’s exit from the EU. | |
Rolls-Royce said on Thursday it had drawn up contingency plans to move design approval out of the UK to Germany because of uncertainty about the shape of Brexit. | |
While Airbus reserved most of its criticism for the British government, Enders said the company was also lobbying the European Union to ensure continued cooperation on defence and security, including multinational projects such as the Galileo GPS navigation system. | |
“If there’s one company in Europe that makes its voice heard, not just in London but Paris in Brussels and Berlin, it’s Airbus,” he said. | |
“We would not understand if the UK falls out of the Galileo project. | |
“Beyond all the bickering and tactics and negotiation, both sides have a strong interest for further close cooperation with the UK on security and defence matters. | |
“There are only two serious military forces in the EU today and one is the UK. Guess who is the other; it’s not Germany.” | |
Airbus | Airbus |
Airline industry | Airline industry |
Jaguar Land Rover | |
Automotive industry | |
Brexit | Brexit |
European Union | European Union |
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