Wednesday, 12 December, 2018

Jaguar Land Rover plans two-week closure as demand falls

Workers at JLR's Solihull plant will down tools for two weeks as production shuts down due to lack of demand Workers at JLR's Solihull plant will down tools for two weeks as production shuts down due to lack of demand
Ginger Lawrence | 09 October, 2018, 14:10

Following weak September sales, JLR announced two-week shutdown at Solihull plant to align supply to reflect fluctuating demand globally.

Staff will be sent home on full pay for a fortnight from 22 October as the British auto manufacturer stops producing any vehicles, as it tries to match supply to dwindling demand.

The company, which builds 500,000 Land Rovers, Range Rovers and Jaguars in the United Kingdom every year and employs 40,000 people, said that the plant would close this month.

Latest figures showed JLR sold 57,114 vehicles in September, 12.3% down on the same month a year ago - with a slump of 46.2% in China blamed on "import duty changes and continued trade tensions" holding back demand.

"Customer orders in the system will not be impacted and employees affected will be paid for the duration of the shutdown".

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Land Rover range posted sales of 37,968 units in the month, down 18.8%, it added.

Despite this, we expect lower tariffs on United Kingdom imports to be beneficial over the full year, he added.

It took the decision after reporting a 46% slide in sales to customers in China, a key market for models made at the plant, where the production line makes Range Rovers and the Land Rover Discovery SUV.

They also fell nearly five per cent in Europe thanks to reduced demand for diesel cars, though United Kingdom demand slipped less than one per cent.

The company has already cut 1,000 jobs this year and has moved some workers at its Castle Bromwich plant onto a three-day week until Christmas amid uncertainty over Brexit and a backlash against diesel cars.