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Jaguar Land Rover to cut 1,000 roles and relocate staff as sales slump

Jaguar Land Rover is cutting 1,000 jobs and shuffling staff around its factories as sales fall.
The company will not be renewing the contracts of agency staff at its Solihull plant which builds the XE and XF saloons and sports cars, with the workers leaving JLR in May and June.
A further 350 permanent staff are being relocated from the Castle Bromwich factory to Solihull.
Jaguar Land Rover to cut 1,000 roles and relocate staff as sales slump

The Solihull plant produces cars including the XE saloon
In a statement, JLR - which had been expanding rapidly over several years - said the move was part of a “regular review of production schedules to ensure market demand is balanced globally”.
It is understood the agency staff were taken on to help manage what a source called “peaks and troughs” of demand as the company - which has about 40,000 UK staff - introduced new models.
The cuts are being blamed on a combination of factors. These include the so-called “demonisation” of diesel in the UK as government uses new taxes to try to dissuade motorists from purchasing cars powered by the fuel, which ministers say produces more pollution than petrol.
About 90pc of the cars JLR sells in the UK are powered by diesel.
Jaguar Land Rover to cut 1,000 roles and relocate staff as sales slump

JLR chief executive Ralf Speth has warned of the danger 'demonisation' of diesel poses to the company

Credit:
Bloomberg
The fall in consumer confidence related to economic uncertainty ahead of Brexit has made motorists less keen to make big purchases, while saloon cars are also becoming less popular, which are other factors in the move by JLR. 
JLR said it “remained committed to our UK plants”. The company added: “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.”
In January JLR said it would be slowing production rates at its Halewood plant as economic uncertainty and concern over the future of diesel hit what is Britain’s biggest car maker.
At the time it was feared that there would be job cuts at the Merseyside facility, which builds the Range Rover Discovery Sport and smaller Evoque models, as it moved from a three-shift system to two shifts a day.
Jaguar Land Rover to cut 1,000 roles and relocate staff as sales slump

The Halewood plant which builds the Range Rover Evoque slowed production earlier this year
Global sales of JLR cars last year rose by 7pc to a record 621,100, though demand flat-lined in the UK at 118,200. Since the start of the year sales have gone into reverse, with demand for Jaguars down 26pc, and Land Rover off 20pc. 
The backlash against diesel and the Volkswagen emissions scandal that helped fuel it have impacted JLR sales.
Industry-wide figures show that the fuel is losing popularity. In 2017, diesel made up 42pc of the new car market in the UK, down from 47.7pc the year before. The most recent industry data from March showed a 37.2pc market share.
Professor David Bailey, an automotive industry expert at Aston University, called the decline “no surprise after extended shutdowns at JLR earlier this year”, with plants taking extended breaks around holidays.
He added: “JLR sales are down in the UK owning to the combined effects of Brexit and the turn against diesel. The company is especially exposed on the latter with UK sales dominated by diesel.”
Jaguar Land Rover to cut 1,000 roles and relocate staff as sales slump

Jaguar's electric I-Pace will be built in Austria

Credit:
Bloomberg
Jaguar's recently launched E-Pace small SUV and I-Pace electric car could help stem some of the marque's sales declines.
However, even strong demand for these cars will not improve the situation for JLR's UK staff as the E-Pace is built in Austria by contract manufacturer Magna Steyr and in China by the Chery-JLR joint venutre. The I-Pace is also due to be built by Magna when it enters full production.
The Jaguar XF Sportbrake – in pictures
 
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