Jaguar Land Rover to cut production jobs in UK

Erika Holt
April 18, 2018

The automotive industry has warned of the impact of Brexit and a fall in demand for diesel cars amid concern over emissions.

Jaguar Land Rover pointed out that "the huge drop in demand in diesel" led to its decision not to renew the contracts of 1,000 workers. Following a record-breaking 2017, in which the company sold 621,109 cars, Jaguar demand is now down 26% year to date, while Land Rover - the bigger brand within the group - has lost a fifth of demand in the UK.

The JLR blamed "continuing headwinds" affecting the vehicle industry for its decision. Additionally, even the uncertainty of Brexit is being seen as one of the reasons. Recent figures from the trade body showed sales of diesel fell a whopping 37 per cent in March compared with the previous year. However, in 2017 overall sales of diesel vehicles in the United Kingdom fell more than 17%, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

The company issued a statement in response to speculation over the cuts: 'In light of the continuing headwinds impacting the vehicle industry, we are making some adjustments to our production schedules and the level of agency staff.

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"Weaker market conditions in the United Kingdom and Europe, driven by lack of consumer confidence and lower demand for diesels, are impacting our growth", said Felix Brautigam, CCO at the Tata-owned carmaker.

The UK has voted to leave the 28-member European Union. Complex talks are now moving on to future relations - after an agreement was reached on a 21-month "transition" period to smooth the way to post-Brexit relations.

JLR is holding meetings today with staff to discuss the changes, which it said are the result of "continuing headwinds" that have forced the company to make "adjustments to production schedules and the number of agency staff". This move came a day removed from Volvo announcing it would only make electric or hybrid models starting in 2019.

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