Jaguar ‘to axe 1,000 jobs over Brexit and diesel fears’

JAGUAR Land Rover is planning to axe 1,000 jobs as it cuts production at two factories – blaming Brexit and uncertainty over diesel policies.

Two plants in the Midlands, Solihull and Castle Bromwich, are set to be hit, although the job losses will be centred on Solihull, where the contracts of around 1,000 agency workers will not to be renewed.

Jaguar is Britain’s largest carmaker with 40,000 workers. Its UK sales in March were down 26 per cent compared to March 2017, and 16 per cent in continental Europe. The firm, owned by Indian parent Tata Motors, is expected to inform staff on Monday over its plans for the next year.

It is expected to single out lower consumer confidence after the Brexit vote as one factor leading to slumping sales.

A spokesman said yesterday it was ‘making adjustments’ to production schedules and agency staff ‘in light of the continuing headwinds impacting the car industry’. Buyers have been shun- ning diesel cars, concerned about government efforts to penalise drivers to try and clean up the environment.

Demand for diesel cars fell 37.2 per cent in March compared to the same month last year.

Mike Hawes, of industry lobby group SMMT, has said diesel is being demonised by higher taxes and the Government is ‘hell-bent on destroying’ the reputation of the UK car industry.

In January JLR said it would temporarily cut production at its other British plant in Halewood, Liverpool, also blaming uncertainty following Brexit and concern around petrol and diesel sales.

A spokesman yesterday added it remained ‘committed to our UK plants’, pointing out its £4billion investment since 2010.

The Department for Business, Energy and Industrial Strategy, said: ‘We are working with the sector to put the UK at the forefront of new automotive technologies to ensure that we remain the destination of choice for future investment.’

‘Diesel is being demonised by taxes’