British automaker Jaguar Land Rover is set to cut thousands of jobs citing lower demand in China and a slump in sales of diesel cars in Europe.
Currently, the English firm is credited for a higher proportion of cars in Britain than any other major or medium-sized carmaker. Reports suggest that the firm has also spent millions of pounds make itself Brexit-ready in case there are tariffs or customs checks.
Between April and September last year, the Jaguar Land Rover lost about $450 million and had announced a cut of close to 1000 jobs in Britain. Apart from that, it had also announced a three-day-week working pattern in Castle Bromwich after calling off production for two weeks at the Solihull plant.
JLR which had become Britain’s largest car seller in 2016, reported a 4.6 percent slump in full-year sales to just under 600,000 vehicles.
The Tata Motors-owned company is responsible for employing close to 40,000 employees in Britain and in the recent years has boosted its workforce at new plants in China and Slovakia. Additionally, in 2018, the company had unveiled its plans to cut costs and improve cash flows by $3.2 billion by “reducing employment costs and employment levels.”
“The announcement on job losses will be substantial, affecting managerial, research, sales, design,” said the source, who spoke to Autoblog on condition of anonymity, not affecting production-line staff “at this stage.”
In 2018, the company had unveiled its plans to cut costs and improve cash flows by 2.5 billion pounds by "reducing employment costs and employment levels."
Jaguar Land Rover which had become Britain’s largest car seller in 2016, reported a 4.6 per cent slump in full-year sales to just under 600,000 vehicles. AMENA had earlier reported about the poor car sales in China that had affected a majority of foreign carmakers. The demand in China which was once the strongest has since been hit by a slowdown, falling by 21.6 percent.
“The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence,” said Jaguar Land Rover Chief Commercial Officer Felix Brautigam.