Tata-owned JLR plans, 1000 job cuts in UK

Nichole VegaApr 15, 2018

British new vehicle registrations have been falling for a year which the auto industry body has partly blamed on weakening consumer confidence in the wake of the Brexit vote, after record demand in 2015 and 2016.

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

It added: "In light of the continuing headwinds impacting the vehicle industry, we are making some adjustments to our production schedules and the level of agency staff".

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. The company stressed it remains committed to its United Kingdom plants, having invested more than 4 billion pounds since 2010 to future-proof manufacturing technologies to deliver new models.

In the United Kingdom, sales fell by 12.8 per cent, while Europe suffered a 5.3 per cent decline.

Some staff roles will also be moved from Castle Bromwich to Solihull. Most of JLR's United Kingdom sales are diesel vehicles.

The Lode Lane plant in Solihull is the current production site for volume-selling models including the Range Rover, Range Rover Sport, Land Rover Discovery and Jaguar F-Pace SUV.

Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars.

Dom Tribe, automotive sector specialist at management consultancy Vendigital, said: 'This decision by Jaguar Land Rover is a further sign of ongoing uncertainty in the automotive industry. As an industry in which investment is heavily reliant on forward planning, industry bodies have been lobbying extensively for greater clarity around a Brexit trade deal.

"With the big turn against diesel engines, Jaguar Land Rover is particularly exposed as more than 90% of its United Kingdom sales are diesels".

Despite strong worldwide sales, industry figures showed UK Jaguar sales down 26 per cent on past year in the first three months, with Land Rover down a fifth.

He said: "JLR appears to be especially exposed as over 90 per cent of sales are diesel".

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