Technology

Tata Motors Jaguar Land Rover may sack 1000 workers in UK

Tata Motors Jaguar Land Rover may sack 1000 workers in UK

Jaguar Land Rover, the biggest carmaker in Britain, is planning to cut around 1,000 jobs and production at two if its factories in England, as reported by Reuters, due to a reduction in sales as a result of Brexit certainty and confusion over diesel policy.

It continued: "We are, however, continuing to recruit large numbers of highly skilled engineers, graduates and apprentices, because we are over-proportionally investing in new products and technologies".

Earlier this year, Britain's largest auto manufacturer had announced plans to cut production at its Halewood plant in Merseyside and pointed to "uncertainty" around the Brexit vote as well as the future of diesel vehicles as the main factors behind the "temporary adjustments".

Production is to be cut at two of the carmaker's plants in the United Kingdom, with an official announcement to be made on Monday.

"On Monday [16 April 2018] we will be cascading our 18/19 production plans for the next fiscal year to our workforce". Solihull and the nearby Castle Bromwich site are expected to be hit by production cuts.

"We also remain committed to our United Kingdom plants in which we have invested more than £4bn since 2010 to future-proof manufacturing technologies to deliver new models".

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"With JLR's United Kingdom production facilities exporting around 75% of its vehicles and importing many parts from the European Union, this action is in part an effort to help mitigate potentially-costly tariffs, which could significantly damage its bottom line". There are 3,200 people employed at the Castle Bromwich site and a further 10,000 at Solihull.

"It's unfortunate that in the United Kingdom demand is not there anymore, and the United Kingdom is our home market".

Jaguar sales are down 26% so far this year, compared with last year, while demand for Land Rovers in the United Kingdom is down 20%.

Julian Knight, MP for Solihull, said: "The news that has come to us is disturbing, and I am in regular contact with JLR on this issue".

Jaguar's XE and XF are understood to have been affected most heavily by this, although nearly every model has been impacted because diesels account for around 90% of JLR's sales.