Jaguar Land Rover to cut 4500 jobs

11 January, 2019, 15:41 | Author: Mary Valdez
  • The firm has factories in Halewood Solihull Castle Bromwich and Wolverhampton

It comes after the company announced late past year its plans to make £2.5 billion budget cuts.

The issues at JLR have arisen as Ford is also looking to cut back on its workforce numbers in Europe. The plan we are putting in place must reflect that.

JLR, owned by India's Tata Motors, operates factories in Halewood, Solihull, Castle Bromwich and Wolverhampton.

Total vehicle sales in China (JLR's biggest market) declined for the first time in two decades previous year, as the nation's consumers reacted to the economic uncertainty surrounding the introduction of United States trade tariffs.

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

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.

Armstrong said: "We are taking decisive action to transform the Ford business in Europe".

Ford is now in talks with Volkswagen Group over a potential alliance, which could boost its strategic cost-cutting and boost its efforts to deliver an alternatively-fulled vehicle (AFV) drivetrain for each of its auto models.

True, Jaguar Land Rover faces plenty of challenges, just like rest of the auto industry.

Most commentators have concluded that the chance of a no-deal Brexit have increased with the governor of the Bank of England recently describing the probability as "uncomfortably high".

At the time, it did not say how many jobs would be lost, although the Financial Times reported in December up to 5,000 jobs could go.

So far, the "Charge and Accelerate" programme has identified over GBP 1 billion of improvements, with more than GBP 500 million already realised in 2018, the company said.

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"We expect the immediate impact on Ford's United Kingdom operations to be limited".

"This is more concerning news for workers across Jaguar Land Rover today, who have suffered months of uncertainty, not least as a result of the government's Brexit chaos", she said.

The retrenchment sits on the blunt edge of a £2.5bn cost-cutting plan, precipitated by declining Chinese sales, the ongoing fallout from the dieselgate scandal and fears for Britain's trading status post Brexit.

The automaker said it would start off by offering voluntary redundancies to United Kingdom workers.

Some of the money saved will be reinvested in the automaker's electrification drive.

But the 2015 decision to shift the production of JLR's Land Rover Discovery vehicle from Solihull to Slovakia, which created 2,350 jobs in eastern European rather than the United Kingdom, has escaped criticism.

Dr Speth stressed that JLR was committed to growing its United Kingdom business and would continue to invest to protect the future of its two "iconic" vehicle brands.

Total Jaguar Land Rover retail sales in 2018 came to 592,708 vehicles, down 4.6% compared with 2017.

Honda said: "Honda has been assessing how best to prepare for any disruption caused by logistics and border issues following the United Kingdom leaving the European Union on March 29".

"With a no-deal [Brexit], we would have stop-start production for weeks, possibly months".

"This is to facilitate production recovery activity following any delays at borders on parts".

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