Jobs and Production to be Cut by Jaguar Land Rover Because of Brexit

Photo by Jaguar MENA from Flickrs

Jaguar Land Rover, the biggest carmaker of Britain will remove approximately 1,000 jobs and production at two of the English factories of the company because of a decline in sales that is caused by the uncertainty regarding Brexit and confusion over the policy on diesel.

A source said that the company’s output would be reduced at its Castle Bromwich and central English Solihull plants, affecting around 1,000 agency workers.

A spokesperson for Jaguar Land Rover (JLR) refused to comment on the number of jobs that would be lost. However, the company said that it would be making some changes to its output plans.

In a statement, the company said: “In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff.”

JLR is not renewing the contracts of some of its agency employees at its Solihull site and is scheduled to notify the staff regarding the plans of the company for the 2018-19 financial year on Monday.

Last January, the company said that it would temporarily lessen the production at its other British plant of Halewood later in 2018 as a response to the weakening demand that is caused by Brexit and tax hikes on diesel cars. However, JLR was not able to detail any job cuts.

So far, the sales of Jaguar are down by 26 percent this year while the demand for Land Rover fell by 20 percent in its home market as the buyers shun diesel, as they are concerned regarding planned tax increases and potential restrictions and bans in various countries.

The source stated: “It’s been obvious to everyone that sales have been dropping.”

New car registrations in Britain have been dropping for a year which the car industry body has blamed partly on declining consumer confidence in the wake of the Brexit referendum, following record demand in both 2015 and 2016.