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 to slash output, jobs because of Brexit, diesel slump

Britain's biggest auto maker briefed staff about the cuts on Monday, confirming reports last week that it was reducing production as sales slump.

Jaguar sales dropped 26 percent so far this year while Land Rover demand fell 20 percent in its home market as buyers shun diesel, concerned about planned tax rises and potential bans and restrictions in several countries.

A spokesperson confirmed with Reuters that, "we are not renewing the contracts of 1,000 agency workers at Solihull". India is also looking at stopping the sale of diesel and petrol cars by 2030.

JLR was very exposed to the demise of diesel.

Autocar reports the British manufacturer has restricted the layoffs to agency workers, with JLR citing a decline in diesel vehicle sales for the decision.

JLR said in a statement on Friday that it was making adjustments to production schedules and the levels of agency staff "in light of the continuing headwinds impacting the vehicle industry".

The uncertainty of Brexit has also led to falling of vehicle registrations in United Kingdom which has been a constant trend for the past year.

On the NSE, the stock had fallen to an intra-day low of Rs 337.55, then recovered some lost ground and finally settled at Rs 340, down 4.78 per cent. Earlier this year, JLR had already reduced the production at the Halewood plant due to weakening demand and also the hike in tax on diesel cars. This move came a day removed from Volvo announcing it would only make electric or hybrid models starting in 2019.

CNN reports the cuts are taking place at a Jaguar Land Rover facility in Birmingham responsible for making the Jaguar F-Pace, Land Rover Discovery and other Range Rover models.

He said the problems caused by Brexit were also unlikely to be solved in a timely manner: "It's hard to say how long this production uncertainty will continue around Brexit negotiations, because it's still unclear what the trading relationship will be between the United Kingdom and European Union with regards to tariffs".