Jaguar Land Rover to cut 4500 jobs in Brexit slump

Car giant Jaguar Land Rover is giving a business update on Thursday which is expected to include job losses as well as investment plans

Car giant Jaguar Land Rover is giving a business update on Thursday which is expected to include job losses as well as investment plans

Britain's biggest auto maker, Jaguar Land Rover, is cutting 4,500 jobs worldwide, with most of the cuts affecting workers in the UK.

JLR chief executive Ralf Speth said a tidal wave of "unprecedented" challenges to the upmarket auto maker meant it was slashing about a tenth of its workforce - the bulk of which are in the United Kingdom - to "protect the future" of the business.

The job losses were widely predicted, after the company revealed previous year it had to make significant cuts to stay in business.

"In the last couple of decades, Ford of Europe has never really been sustainably profitable", Steven Armstrong, company vice-president and head of its operations in Europe, Middle East and Africa said in a conference call with reporters.

China was once JLR's single biggest market and has been crucial to its expansion and success.

In China, demand has been adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.

Such was the demand for JLR products, just over four years ago the vehicle firm opened a manufacturing plant in the country to help boost its share.

Ford lost $245 million in Europe in the third quarter as sales slumped in Turkey and Russian Federation.

The luxury carmaker employs 44,000 workers in the UK
The luxury carmaker employs 44,000 workers in the UK

They said in response: It is, of course, bad news that Jaguar Land Rover is being forced to make further job cuts. It lost 354 million pounds between April and September 2018.

Earlier this month it was reported United Kingdom new auto sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, hit by the collapse in demand for diesel, as the industry body warned of the existential threat to the sector posed by Brexit.

Automakers have been hit by a regulatory clampdown on diesel emissions ever since Volkswagen admitted to systematic cheating in 2015, leading regulators to discover massive discrepancies between real-world and theoretical pollution levels. Executives have expressed fears that a no-deal Brexit could cost it as much as £1.2 billion, while Donald Trump's long-mooted tariffs on European vehicle imports could set it back a further £1 billion, JLR having sold a record 114,000 cars in the United States past year. It is also working to ramp up its electric vehicle production.

The threat of Brexit has also intensified as the United Kingdom is set to leave the European Union on 29 March.

He said the announcement was not directly linked to Brexit, but he added that Ford will have to undertake a further review if the United Kingdom leaves the European Union without a deal in March.

"I don't want to make at the moment any statement about Brexit and/or the closure of the plant or further implications out of it not knowing the results from politics".

The company said it plans to drop unprofitable models, on top of already announced plans to close an automatic transmission plant in Bordeaux, combine administrative headquarters in Britain and end production of its C-Max vans in Saarlouis, Germany.

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