CHINA CRISIS DENTS JAGUAR
Jaguar Land Rover is to slash spending by £1billion after a sharp fall in sales.
The cuts, during this financial year and next, are part of plans to try to boost the firm’s profitability by £2.5bn.
The car giant slumped £90million into the red in the three months to the end of September as the number of cars it sold crashed by 13.2% to 129,887. It blamed “challenging market conditions” in China – one of its biggest markets – worsened by the trade dispute between Beijing and US President Donald Trump.
American sales also slowed while the European market was hit by new EU emissions testing rules “alongside continuing uncertainty related to Brexit”. JLR chief executive Dr Ralf Speth said it was launching “programmes for cost and cash-flow improvements”, and these would “lay foundations for sustainable, profitable growth”. JLR’s Solihull plant is closed for two weeks because of “fluctuating demand”. This follows a three-day week at the Castle Bromwich plant.