LONDON, APR 17
Jaguar Land Rover, owned by India’s Tata Motors, today said it will cut 1,000 jobs and reduce production at two units as the UK’s biggest carmaker blamed Brexit, slumping sales of diesel vehicles and regulatory issues for its woes.
Jaguar sales have fallen 26 per cent and Land Rover dropped 20 per cent this year and the company said it will not be renewing the contracts of 1,000 temporary workers at two factories.
Jaguar Land Rover employs about 40,000 workers in the UK and produce over 500,000 vehicles a year.
A company spokesman confirmed that 1,000 agency staff at Solihull were not having their contracts renewed.
Meanwhile, 362 permanent staff will be transferred from another West Midlands site, at Castle Bromwich, to Solihull.
Demand for Jaguar Land Rover cars has also fallen in Europe due to fallout from the diesel emissions scandal.
Jaguar Land Rover pointed out that “the huge drop in demand in diesels” led to its decision not to renew the contracts of 1,000 workers.
The JLR blamed “continuing headwinds” affecting the car industry for its decision.
Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars.
JLR was very exposed to the demise of diesel. Recent figures from the trade body showed sales of diesels fell a whopping 37 per cent in March compared with the previous year.Unhappily for JLR, 90 per cent of its vehicles are powered by diesel engines and there are critical industry voices that say they have been slower than their rivals to embrace hybrids and electric, the BBC reported.
