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Jaguar Land Rover cuts production in UK plants

By Ashley Norris

Car maker cites falling diesel demand in Europe and a tough sales environment in China as reasons for cost cutting

Jaguar Land Rover is responding to tough market conditions and a fall in demand by reducing production in two of its British factories.

The company, which posted a 2.3 per cent drop in retail sales in the last quarter of 2019, is halting production on selected days over four weeks from late February at its Castle Bromwich factory and stopping production on several days in the same period at its Solihull plant. The output will be reviewed again at the end of March.

The company says its cost cutting is the result of falling diesel demand in Europe and a tough sales environment in China. It does however insist that the move is not in any way connected to the outbreak of the coronavirus. Some European car makers, including Fiat, have reported difficulties in obtaining car parts that are manufactured in China because, in a bid to contain the virus, suppliers are currently not working.

A spokeswoman from JLR said: “Through its ongoing transformation programme, Jaguar Land Rover is taking action to optimise performance, enable sustainable growth and safeguard the long-term success of our business.

"The external environment remains challenging for our industry and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success.”

JLR insists it remains committed to its production plants in the UK, citing the new all-electric Jaguar XJ which will be built in Castle Bromwich and the next generation of the Range Rover, which will be manufactured in Solihull.

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