New Delhi: Shares of Tata Motors on Wednesday slipped as much as three per cent in morning trade on bourses after the Jaguar Land Rover (JLR) issued a warning to the UK government of massive losses if Britain was to leave the European Union (EU).
JLR CEO Ralf Speth, who was speaking at the Zero Emission Vehicle Summit in Birmingham, on Tuesday said that fears of a so-called "no-deal" Brexit and lack of clarity over Britain's post-Brexit plans threatens the UK-based luxury carmaker's entire operational set up.
Following the development, shares of Tata Motors opened on a weak note at Rs 269.80, then slipped to a low of Rs 259, down by 3.06 per cent over its previous closing price. On NSE, the Tata Motors stocks opened at Rs 142.95, then lost ground and fell to a low of Rs 139.40, down 2.34 per cent over its last close.
"Just one part missing could mean stopping production at a cost of 60 million pounds a day. That is a huge risk. We depend on free, frictionless, seamless logistics," he said. Back in July, the JLR CEO had issued a similar statement warning the UK government against a "bad Brexit deal".
The UK's largest carmaker has witnessed a complete turnaround in its fortunes since, Tata Motors acquired the traditional British brands from Ford 10 years ago.