Jaguar Land Rover to cut 1000 jobs at Solihull

14 April, 2018, 22:14 | Author: Sergio Cook
  • Jaguar Land Rover to cut jobs and production – and to blame Brexit

Britain's biggest carmaker Jaguar Land Rover (TAMO.NS) will cut around 1,000 jobs and production at two of its English factories due to a fall in sales caused by uncertainty around Brexit and confusion over diesel policy, a source told Reuters.

"On Monday we will be cascading our 2018/19 production plans for the next fiscal year to our workforce".

Jaguar Land Rover (JLR) said recruitment of apprentices and engineers in the United Kingdom would continue and that it remained committed to its United Kingdom plants.

Production will be cut at the Castle Bromwich and Solihull sites, with affected staff based at Solihull.

"We also remain committed to our United Kingdom plants in which we have invested more than £4billion since 2010 to future proof manufacturing technologies to deliver new models".

The company is not renewing the contracts of several agency staff and will be informing staff of plans for the next financial year on Monday. JLR employs around 40,000 people across six sites in the UK.

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The announcement will fuel debate on the impact of Brexit on industry, after the company pointed to the uncertainty around leaving the European Union, alongside the challenges facing diesel, when announcing the "temporary adjustments" to its production schedules at Halewood (home to the Range Rover Evoque and Land Rover Discovery Sport) in January. "Following a review of planned volumes, we are planning to make some temporary adjustments to the production schedule at Halewood in Q2".

The reports come after JLR said in January it would slash production amid Brexit fears and the government's change of heart on diesel cars.

The British vehicle manufacturer's sales have been hit heavily by the demonisation of diesel this year. However, the Tata Group company said the automotive industry continues to face a "range of challenges" which are adversely affecting consumer confidence.

The auto giant has cited "continuing headwinds" impacting the vehicle industry for the decision.

The firm's Jaguar sales are down 26% so far in 2018 compared to 2017, while Land Rover sales have dropped 20%.

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