After facing a 50 per cent fall in its sales in China, Jaguar Land Rover has now decided to close its plant in Solihull, London for two weeks.
Reports suggest that the fall in the sale was majorly due to China’s import duties and trade war with the US that hurt the company’s demand in the country. JLR is not the only prey to the trade wars but many others which have led to China’s automobile sales to a sump in the recent months.
“As part of the company’s continued strategy for profitable growth, Jaguar Land Rover is focused on achieving operational efficiencies and will align supply to reflect fluctuating demand globally as required,” a JLR spokesman said in a statement.
The plant is expected to pull its shutters down starting from October 22. However, the Unite union clarified that no jobs would be lost because hours would be banked.
Earlier in August, the company decided to limit its factory in Castle Bromwich to a three-day week from October until the beginning of December.
Apart from that, JLR has also been facing trouble with new and stringent emission norms in some countries which have decided to raise tax as well as clampdown diesel engines to cut air pollutions, noting that about 45 per cent of the automaker’s sales are diesel models.
The Solihull factory in London builds the Jaguar F-Pace, Land Rover Discovery, Range Rover, Range Rover Sport and Range Rover Velar.