Jaguar Land Rover plans two-week closure as demand falls

Marco Green
October 9, 2018

At 12:50 hours IST, it was quoting at Rs 175.30, down Rs 37.45, or 17.60 percent amid high volumes on the BSE.

Tata Motors was the biggest loser on Sensex, with shares falling as much as 14 percent to their lowest level since January 2, 2012, after Jaguar Land Rover (JLR) reported 12.3 percent decline in global sales at 57,114 units in September, hit by lower demand in China.

Chinese sales almost halved, falling 46.2 per cent, with JLR blaming import duty changes and trade tensions for hurting consumer appetite.

The company, which builds 500,000 Land Rovers, Range Rovers and Jaguars in the United Kingdom every year and employs 40,000 people, said that the plant would close this month.

JLR sold 57,114 cars in September, a 12.3 per cent year on year drop, with the firm shipping nearly 20 per cent fewer Land Rovers than September 2017.

Felix Brautigam, the carmaker's chief commercial officer, said: "As a business we are continuing to experience challenging conditions in some of our key markets".

A quarter of Jaguar Land Rover's workers will down tools for two weeks later this month in the latest sign of a sales slowdown for the troubled vehicle manufacturer.

Despite this, we expect lower tariffs on United Kingdom imports to be beneficial over the full year, he added.

While sales of new models like the Jaguar I-Pace, the Jaguar E-Pace compact SUV, and the Range Rover Velar offset a decline in older models, JLR sales also took a 6.9 per cent hit in the US.

Sales fell 0.8% in the United Kingdom, 4.7% in Europe, and by 6.9% in North America. This is further to three day week from Oct-18 to Dec-18 at Castle Bromwich plant.

JLR attributed slower production plans to weakening global demand, especially in China, and weakness in diesel sales.

Unite, the UK's biggest union for auto workers, said a "triple whammy" of Brexit uncertainty, government confusion over diesel and ministers' half-hearted support for electric vehicles was threatening the future of the United Kingdom auto industry.

Other reports by Click Lancashire

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