Jaguar Land Rover to slash output, jobs because of Brexit, diesel slump

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The company is cutting production as "headwinds" hit the auto industry amid an economic slowdown and falling diesel demand.

While the brand is gearing up to launch an array of new offerings that includes the F-Type SVR and the new Range Rover Sport, the company might be slashing 1,000 jobs as well as drastically reduced production at two of its plants.

Britain's biggest auto maker briefed staff about the cuts on Monday, confirming reports last week that it was reducing production as sales slump. About 362 staff personnel will be moved from the Castle Bromwich facility to Solihull to make up for the dearth of workforce.

Commenting on JLR's decision, Professor of industry, David Bailey, from Aston University, said: "With the big turn against diesel engines, Jaguar Land Rover is particularly exposed as more than 90 per cent of its United Kingdom sales are diesels".


"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", the company stated.

"We also remain committed to our United Kingdom plants, in which we have invested more than £4 billion [$5.7 billion] since 2010 to future-proof manufacturing technologies to deliver new models", the company stated.

There are now 3,200 people employed at Castle Bromwich and 10,000 at Solihill.

Jaguar sales have fallen 26 per cent and Land Rover dropped 20 per cent this year and the company said it will not be renewing the contracts of 1,000 temporary workers at two factories.


JLR chief executive Ralf Speth has pointed to weakness in the economy as well as a drop in demand for diesel and tax changes for creating a "reaction in the consumer base".

We recently got to drive the new Range Rover in the United Kingdom and the SUV is now clearly more luxurious and capable than ever.

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"So in our home market, it's important that the economy can grow and that we have free opportunity to sell our cars".


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