Published: Wed, April 18, 2018
Worldwide | By Isabel Fisher

Jaguar Land Rover to slash output, jobs because of Brexit, diesel slump

Jaguar Land Rover to slash output, jobs because of Brexit, diesel slump

JLR is holding meetings today with staff to discuss the changes, which it said are the result of "continuing headwinds" that have forced the company to make "adjustments to production schedules and the number of agency staff".

The company said that retail sales were 83,732 for March and 172,709 for the fourth quarter, down 7.8% and 3.8%, respectively, primarily due to lower United Kingdom sales, and to a lesser extent reduced sales in Europe.

Despite the bleak figures for March, the company reported retail sales of 614,309 vehicles for the financial year ending March 31, up 1.7% on the previous year.

New auto sales fell by 5.7% in the United Kingdom a year ago amid falling business and consumer confidence.

Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars. Both models will be powered by four conventional petrol and diesel engines.

This year has been one of major contrast for JLR.


Autocar reports the British manufacturer has restricted the layoffs to agency workers, with JLR citing a decline in diesel vehicle sales for the decision.

Rohit Suri, president & managing director, Jaguar Land Rover India, (JLRIL), said: "The Range Rover and Range Rover Sport have always offered best-in-class comfort, technologies, refinement and driving pleasure".

Meanwhile, 362 permanent staff will be transferred from another West Midlands site, at Castle Bromwich, to Solihull.

Also, Brexit and related issues have made it increasingly hard for JLR to finalise on a strategy.

The two production plants located at central English Solihull and Castle Bromwich will see a drop in production that in turn will affect 1,000 workers.

"We also remain committed to our United Kingdom plants, in which we have invested more than £4 billion [$5.7 billion] since 2010 to future-proof manufacturing technologies to deliver new models", the company stated.

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