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

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

Jaguar Land Rover (JLR) has confirmed that it will shed 1,000 agency staff jobs at its Solihull plant in the UK Midlands over the next two years because of "continuing headwinds impacting the vehicle industry".

Last week the company - which has about 40,000 staff - attributed the move to "continuing headwinds impacting the vehicle industry", though insiders hinted Government policy towards diesel was the main driver.

It added: "We also remain committed to our United Kingdom plants in which we have invested more than £4 billion since 2010 to future proof manufacturing technologies to deliver new models".

Britain's biggest vehicle manufacturer employs 40,000 people in the United Kingdom, of whom a quarter work at the Solihull plant.

The company added that it would be moving 360 jobs to Solihull from the nearby Castle Bromwich plant, which makes the Jaguar XE, XF, XJ and F-Type. The move is attributed to declining output at Castle Bromwich as demand for new cars falls.

A BBC analyst says Jaguar Land Rover is "very exposed to the demise of diesel" as its sales in the segment had dropped 37 percent in March year over year.

Industry figures show continuing declines in United Kingdom auto production mainly thanks to steep falls in domestic demand, while there are also concerns about how exports may be affected by any trade barriers which could be thrown up by Brexit.

Announcing the commencement of the bookings, Rohit Suri, President & Managing Director, Jaguar Land Rover India said, "The Range Rover and Range Rover Sport have always offered best-in-class comfort, technologies, refinement and driving pleasure". We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we over-proportionally invest in new products and technologies. "But there's no getting away from the impact that the Government's diesel tax has had, sowing extra confusion among drivers who are holding off on replacing diesels".