JLR to "cut 5000 United Kingdom jobs"

10 January, 2019, 22:41 | Author: Myra Gill
  • Jaguar to cut 4,500 workers amid falling sales in China and Brexit fears | Daily Star

JLR's figures were also dented by the introduction of European emissions standards known as WLTP, which resulted in a fall in demand for diesel cars.

In the darkest day for the British automotive industry since the collapse of Rover Group 14 years ago with the loss of 6,000 jobs at Longbridge in Birmingham, Jaguar Land Rover said it has to take "decisive action" to secure its long-term future.

And Ford signalled "significant" cuts among its 50,000 European workforce under plans to make it more competitive and make its business more sustainable. "We have great belief in the potential of JLR's distinctive premium products and brands as well as in JLR's design and engineering capabilities", Tata Motors Chairman, N. Chandrasekaran said in late December.

They come in addition to the 1,500 workers who left the company a year ago. It lost 354 million pounds between April and September 2018.

JLR, which became Britain's biggest carmaker in 2016, had been on course to build around 1 million vehicles by the turn of the decade, but output in 2018 looks set to have fallen as sales in the first eleven months dropped 4.4 percent.

The company declined to comment when contacted by Reuters on Thursday. "It would be very very hard for us to cope", warned Toyota Motor Europe's deputy managing director, Tony Walker, at a parliamentary committee hearing previous year.

He said: "In JLR, market conditions, particularly in China, have deteriorated further".

The firm's chief financial officer said in October that the firm's Changshu plant in China "has basically been closed for most of October in order to allow the inventory of both our vehicles and dealer inventory to start to reduce". United Kingdom new-car sales tumbled at their steepest annual rate since the financial crisis past year.

In July it had warned that a "bad" Brexit deal could jeopardize planned investment of more than $100 billion, saying the future was unpredictable if free and frictionless trade with the European Union and unrestricted access to its single market was not maintained.

The company has sounded some of the most urgent warnings among United Kingdom manufacturers about the damage that Brexit uncertainty was doing to investment in the UK.

The JLR layoffs, representing roughly 10% the company's workforce, come on top of the 1,500 people who left in 2018.

"With record levels of new investment and models set to come on stream in its United Kingdom factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown". It's already moved all Land Rover Discovery production overseas to eastern Europe.

JLR, which has 44,000 workers in the United Kingdom, had cut almost 1,000 jobs in country in 20018. JLR will build the new-generation Land Rover Defender in Slovakia, analysts predict.

India's Tata conglomerate bought JLR from Ford in 2008, saving the British carmaker from bankruptcy.


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