JLR TO SLASH 5,000 JOBS Global sales dip 4.6%
JAGUAR Land Rover is set to announce up to 5,000 job cuts on Thursday after being buffeted by slumping sales in China and concerns over Brexit, a media report said.
The iconic British carmaker, which is owned by Tata Motors and employs more than 40,000 people in Britain, could not immediately be reached for comment when contacted.
Marketing, management and administration roles are expected to be those most affected, the report said.
According to the broadcaster, the job layoffs are part of a $3.2 billion cuts programme.
The report said that JLR had been hit by a slump in Chinese sales, a downturn in diesel vehicle sales and fears about Britain’s competitiveness after Brexit. The carmaker has already moved to ensure it will still have a plant inside the European Union after Britain’s planned departure from the bloc on March 29.
In October, JLR opened a $1.6 billion factory in Nitra, western Slovakia, its first in continental Europe.
In July it had warned that a bad Brexit deal could jeopardise planned investment of more than $100 billion, saying the future was unpredictable if free and frictionless trade with the EU and unrestricted access to its single market was not maintained. Britain’s business minister Greg Clark said that a no-deal Brexit would be a disaster for the firm. “JLR is a stellar company with a first-class workforce,” he told. “They have always been clear that their success depends on exports, including to the rest of the EU. They are one of the prime examples of a brilliant just-in-time manufacturing process... That helps them be competitive. Given the difficulties
JLR on Thursday reported a 4.6 per cent fall in global vehicle sales to 5,92,708 units in 2018 hit by tough market conditions in China. Sales of Jaguar brand of vehicles during the year stood at 1,80,833 units, a growth of 1.2 per cent over 2017 sales, the company said.
However, its range sales declined 6.9 per cent in 2018 to 4,11,875 units, it added. “The economic slowdown in China along with ongoing trade tensions are continuing to influence consumer confidence. The impact is being felt across several industries globally,” JLR chief commercial officer Felix Brautigam said.
Despite this, the company continues to work that they are going through... To add further costs and further disruption from a no-deal Brexit, closely with retailers and is taking necessary actions to balance production with demand in order to rejuvenate sales as part of turnaround plan for the business, he added.
For December 2018, the total sales for JLR were at 52,160 units, a decline of 6.4 per cent as compared with December 2017, it added. The company, which is the UK’s largest automotive manufacturer, said sales during the month were impacted primarily due to ongoing challenging market conditions in China. “JLR continues to work closely with retailers in China to respond to the present market conditions,” the company said. it”s clear why they have been so clear why this would be against their interests,” he further added.