Jaguar Land Rover To Cut 5,000 Jobs Amid Brexit Concerns

Jaguar Land Rover To Cut 5,000 Jobs Amid Brexit Concerns

The savings and "cashflow improvements" will be made over the next 18 months and the new job losses are in addition to 1,500 workers who left the company past year.

Jaguar Land Rover said earlier that its retail sales fell 4.6 per cent in 2018, citing uncertainty surrounding Brexit, the trade-war driven Chinese slump that lowered its sales in the country by 22 per cent, and consumer misgivings around the diesel engines that power much of its Land Rover lineup.

Past year it was rumoured that as part of a £2.5 billion savings plan for the company thousands of jobs would be axed, but now it has been confirmed.

In October, JLR opened a 1.4-billion-euro ($1.6-billion) factory in Nitra, western Slovakia, its first in continental Europe.

The company is facing several challenges, including uncertainty over Brexit, but has been particularly effected by a significant fall in sales in China, a previously booming market for the auto firm.

The firm, owned by Indian conglomerate Tata, cut 1,000 temporary contract workers at its plant in Solihull in 2017.

But as part of its new "business plan", some 4,500 jobs will be cut, mainly in management, marketing and administrative roles but some productions staff may also be hit, the BBC reported. But sales in China have fallen almost 50% in recent months as cautious Chinese consumers have been holding back on big ticket purchases amid global trade tensions. The move comes after the company shed 1,500 jobs in 2018. "We have great belief in the potential of JLR's distinctive premium products and brands as well as in JLR's design and engineering capabilities", Tata Motors Chairman, N. Chandrasekaran said in late December.

Ford said it will seek to exit the family vans or MPV segment, review its operations in Russian Federation, and combine the headquarters of Ford U.K. and Ford Credit to a site in Dunton, Essex to achieve a 6 per cent operating margin in Europe.

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New all-electric vehicles will be offered for all Ford models, while there will be a more "targeted" line-up of models in the future.

Britain's business minister Greg Clark said a no-deal Brexit would be a disaster for the firm.

"This is not about making the business today more efficient but completely redesigning it", Ford's European president, Steve Armstrong, told the Financial Times.

"We expect the immediate impact on Ford's United Kingdom operations to be limited". It is also working to ramp up its electric vehicle production. It's hoping that many will go through a voluntary redundancy programme.

"Jaguar Land Rover workers have had to endure a great deal of uncertainty over recent months as they continue to work hard to ensure the carmaker remains a global leader".

Beyond the £2.5 billion now being sought, rumours abound that Jaguar could be reincarnated as an all-electric brand in the not-too-distant future, better positioning it to deliver on future customer demand and lessening the burden it now places on the far-healthier Land Rover.

"With record levels of new investment and models set to come on stream in its United Kingdom factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

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