Jaguar Land Rover to cut 4500 jobs

Jaguar Land Rover to cut 4500 jobs

Jaguar Land Rover Plc, owned by India's Tata Motors Ltd, plans to eliminate 4,500 jobs worldwide, as the UK's biggest automobile maker responds to the sales slowdown caused by Brexit, flagging demand for diesel-powered vehicles and a downturn in China.

Ford signalled "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.

Most of the cuts will be in the United Kingdom, with a voluntary programme being launched, and are in addition to 1,500 workers who left the company a year ago.

There were reports past year that thousands of jobs could be axed as part of a £2.5 billion savings plan amid falling sales in China and a drop in demand for diesel cars, but the figure was not confirmed.

This includes today's announcement of investment in next generation electric drive units to be produced in Wolverhampton and a new battery assembly centre in Hams Hall.

Jaguar Land Rover Chief Executive Ralf Speth said he had serious concerns about the impact of a hard Brexit but it was not possible to predict what steps might be required if that happens.

Jaguar Land Rover's United Kingdom workforce has grown from around 17,000 to more than 40,000 in the last six years, at its sites including Whitley near Coventry, Halewood on Merseyside, Solihull, Castle Bromwich and Wolverhampton.

The firm reported a £90m pre-tax loss in the three months to 30 September, compared with a £385m profit in the same period in 2017.

In China, demand was adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.

With the fallout from the VW emissions scandal continuing to be felt, United Kingdom sales of diesel cars declined by 29.6 per cent in 2018.

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If, as expected, the United Kingdom bears the brunt, or the entirety, of JLR's global cost-cutting, JLR may well say it tried to warn us.

"Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover". They come on top of the 1,500 people who left the company in 2018.

A Ford spokesman said the auto maker now assumes that any Brexit deal would keep tariff-free trade between Britain and Europe.

"One of the disadvantages of membership of the European Union is that it uses our money to move our jobs from the United Kingdom to other European Union countries".

The company said it would start a voluntary buyout program and implement a flatter management system as it increases investment in areas such as electrification.

The vehicle manufacturer has been moving its production of the Land Rover Discovery model from its plant in Solihull, West Midlands to Eastern Europe since 2015.

Jaguar Land Rover announced it is cutting thousands of jobs.

JLR also employs around 10,000 people in Solihull - its biggest factory - and around 3,200 at its Jaguar factory in Castle Bromwich, where a three-day week was introduced in the autumn.

Britain's business minister Greg Clark said on Thursday it is clear why a no-deal Brexit would add to the problems with further costs and disruption.

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