JLR TO SLASH 5,000 JOBS Global sales dip 4.6%

Financial Chronicle - - MONEY - AGENCE FRANCE PRESSE

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.

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