Jaguar Land Rover: 4500 jobs to go in shake-up

Staff gather inside the gates of the Jaguar Land Rover site in Halewood near Liverpool England Thursday Jan. 10 2019. According to media reports Jaguar Land Rover is widely expected to announce up to 5,000 job cuts as the carmaker addresses slowing

Jaguar Land Rover: 4500 jobs to go in shake-up

In December 2018, the company refused to comment on reports that it was preparing to cut thousands of jobs in the New Year.

Some of the money saved will be reinvested in the automaker's electrification drive.

Diesel accounts for 90 per cent of Jaguar Land Rover's British sales and 45 per cent of global demand, the company said past year, as demand tumbles following new levies in the wake of the Volkswagen scandal.

The cuts, representing roughly 10 per cent the company's workforce, are part of a $3.2 billion (2.5 billion-pound) push announced past year to reduce costs and boost cash flow through 2020.

The company employs around 10,000 people in Solihull - its biggest factory - and around 3,200 at its Jaguar factory in Castle Bromwich, where a three-day week was introduced in the autumn.

In 2018, the company opened its latest vehicle manufacturing plant in Slovakia as well as investment into specialist engineering hubs in the Republic of Ireland, Hungary and Manchester, UK.

The firm, owned by Indian conglomerate Tata, cut 1,000 temporary contract workers at its plant in Solihull in 2017.

In China, demand was adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US. Production-line workers won't be affected, they said.

But back in April the manufacturer announced plans to cut 1,000 manufacturing contractor jobs amid falling demand amid anti-diesel sentiment and the pressures of Brexit.

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He said: "We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers".

Steven Armstrong, Ford's European group vice president, said the company was taking "decisive action" to transform its European business.

Ford is now in talks with Volkswagen Group over a potential alliance, which could boost its strategic cost-cutting and boost its efforts to deliver an alternatively-fulled vehicle (AFV) drivetrain for each of its auto models.

A Ford spokesman said the vehicle maker now assumes that any Brexit deal would keep tariff-free trade between Britain and Europe.

Some 5,000 jobs cuts will be announced on Thursday, mainly in management, marketing and administrative roles, the BBC reported.

"We expect the immediate impact on Ford's United Kingdom operations to be limited".

The Jaguar Land Rover workforce is to be cut by 6,000, or 15 per cent, with a decision to axe a further 4,500 jobs this year. It is also working to ramp up its electric vehicle production.

Beyond the £2.5 billion now being sought, rumours abound that Jaguar could be reincarnated as an all-electric brand in the not-too-distant future, better positioning it to deliver on future customer demand and lessening the burden it now places on the far-healthier Land Rover.

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