Jaguar Land Rover To Cut 5,000 Jobs Amid Brexit Concerns

Elias Hubbard
January 10, 2019

The move, also thought to be a result of lower demand for diesel cars, forms part of cost-cutting plan worth £2.5bn, which was devised after JLR suffered hefty financial losses in 2018.

There will also be a new battery assembly centre at Hams Hall, described as one of the largest of its kind in the United Kingdom, using new production techniques and technologies to produce battery packs and modules for future Jaguar and Land Rover models.

Job losses, expected to be announced on Thursday, will mainly involved management, marketing and administrative roles but it is feared there could be some cuts in production too.

In the United Kingdom, "continuing uncertainty related to Brexit" has been blamed.

The firm, which is owned by Indian conglomerate Tata, made a £90m pre-tax loss in the three months to September 30, a major reversal from the £385m profit of the previous year.

JLR's sales have also been hurt by consumer confusion and a shift away from diesel-powered cars in Europe following the VW emission cheating scandal.

"It's still hard to see any upside to Brexit", said SMMT Chief Executive Mike Hawes.

"What is crucial now is that the Government acts to mitigate against serious repercussions for tier two and three suppliers in the Black Country and across the West Midlands".

"I will do everything I can to do support those in my constituency who are affected".

Unite, the country's largest manufacturing union, said it would be pressing the auto maker to safeguard its members' jobs.

Ford signalled there would be "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.

The company said it remains fully committed to the Chinese market and added it has long-term confidence in the Chinese market.

It's a tough day for the European auto industry.

Britain's business minister Greg Clark said a no-deal Brexit would be a disaster for the firm.

A almost 30 percent drop in demand for diesel was the most significant factor in the decline.

Unite national officer Des Quinn said: "Ford's workforce in the United Kingdom is world class in making and developing engines and gearboxes that are shipped all over the globe".

Jaguar Land Rover (JLR) has confirmed it is cutting 4,500 jobs, with the substantial majority coming from its 40,000 strong United Kingdom workforce. The remaining 3,000 will come through a voluntary redundancy programme.

Referring to the attacks by governments and environmentalists on diesel, the engines that...

Under the plan, employment costs and employment levels will be reduced, and the job losses will be in thousands, the agency reported, citing people familiar with the matter.

Cars being manufactured in the Aluminium Body Shop, at Jaguar Land Rover's Advanced Manufacturing Facility in Solihull, Birmingham.

Other reports by Click Lancashire

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