Jaguar Land Rover 'to cut 5000 jobs' as losses continue

Jaguar Land Rover 'to cut 5000 jobs' as losses continue

Britain's biggest carmaker Jaguar Land Rover (JLR) is set to announce "substantial" job cuts in the thousands, a source told Reuters, as the company faces double-digit drops in demand in China and a slump in sales for diesel cars in Europe.

They mean a downturn in Chinese sales, a slump in diesel sales and concerns about United Kingdom competitiveness post-Brexit.

"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".

Ford's $14 billion global cost-saving plans includes exiting the minivan segment, stopping manufacturing of automatic transmissions in Bordeaux in August, reconsidering its operations in Russian Federation, and combining the headquarters of Ford U.K. and Ford Credit to a site in Dunton, Essex.

The turnaround plan hinges around 2.5 billion pound cash savings, which will be materialised by cutting costs and improving cash flows.

The company has sounded some of the most urgent warnings among United Kingdom manufacturers about the damage that Brexit uncertainty was doing to investment in the UK.

The company also announced new investment in electric technology at its Wolverhampton engine manufacturing centre and the launch of a new battery assembly centre at Hams Hall, North Warwickshire.

In its biggest market, China, the auto industry recorded its first slump in sales in more than two decades.

Details of job cuts are not expected until later in the year, although staff based at Warley in the West Midlands will move to Dunton in Essex.

The anticipated announcement of job losses on Thursday is not the first time the company has made cutbacks in recent years.

More news: CES 2019: LG launches 88-inch OLED display with dizzying 8K resolution

In October a year ago the auto giant unveiled a £2.5 billion turnaround plan that included cost cutting after Brexit uncertainty and slowing demand in China left it nursing a hefty second-quarter loss.

"Given the difficulties that they're going through.to add further costs and further disruption from a no-deal Brexit, it's clear why they've been so clear that this would be against their interests", said business minister Greg Clark.

China has been the company's biggest and most profitable market.

In June, the company said it would move production of the Discovery sport utility vehicle to Slovakia from Birmingham, England, to make room for future electric cars.

JLR has warned of further losses in the event of the United Kingdom leaving the European Union with a poor trade deal or no deal.

The automaker said it would start off by offering voluntary redundancies to United Kingdom workers.

In China it has hired 4,000 workers since 2014.

In the United Kingdom the company runs three car-making factories: Solihull, Castle Bromwich and Halewood.

JLR, which became Britain's biggest carmaker in 2016, had been on course to build around 1 million vehicles by the turn of the decade, reported a 4.6 percent drop in full-year sales to just under 600,000 vehicles.

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