Published: Tue, April 17, 2018
Science | By Joan Schultz

Land Rover to cut jobs and production as diesel vehicle sales slump

Land Rover to cut jobs and production as diesel vehicle sales slump

Jaguar Land Rover is said to employ about 40,000 people in the United Kingdom altogether, and 10,000 at its Solihull plant.

A spokesman confirmed that 1,000 agency staff at Solihull were not having their contracts renewed.

Year-on-year sales drops for both Jaguar and Land Rover are in double-digit percentage levels, with Land Rover down 20 percent and Jaguar down 26 percent in the first quarter of 2018 compared with the same period in 2017.

The JLR blamed "continuing headwinds" affecting the auto industry for its decision. Additionally, even the uncertainty of Brexit is being seen as one of the reasons.

JLR was very exposed to the demise of diesel.

Despite the bleak figures for March, the company reported retail sales of 614,309 vehicles for the financial year ending March 31, up 1.7% on the previous year.

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

Last week the company - which has about 40,000 staff - attributed the move to "continuing headwinds impacting the auto industry", though insiders hinted Government policy towards diesel was the main driver.

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

On NSE, the stock opened at Rs 350.80, then fell to an intra-day low of Rs 340.70, down 4.57 per cent over its last close.

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".

News reports parent company India's Tata Motors blamed "uncertainty over Brexit and changes to taxes on diesel cars" as a reason to cut production and not renew thousands of staff contracts.

Jaguar reduced production at its Halewood plant back in January in response to sinking demand, but that move wasn't thought to involve any job losses.

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