Oct 31, 2018

Job fears as Jaguar unveils £2.5bn turnround plan

Jaguar Land Rover has launched a £2.5bn turnround programme to shed costs and cut planned investment as falling sales in its major markets and concerns over the potential impact of Brexit hit the business. The UK's largest carmaker aims to reduce costs by £1bn over the next 18 months, in a move that is likely to lead to further job losses among its British workforce after cuts to staff numbers and working hours earlier in the year. The company blamed an array of challenges, from falling diesel sales and a slowdown in Chinese demand to uncertainty posed by Brexit, after falling to a loss of £90m for the quarter ending in September. Earlier this year the company cut 1,000 jobs at its flagship Solihull plant because of the decline of diesel, and in September moved its Jaguar plant at Castle Bromwich to a three-day week because of poor sales. The core of its problems in the last quarter came from China, where sales nearly halved as the market slowed and consumers delayed purchases, particularly of imported luxury vehicles, because of uncertainties stemming from the trade war with the US. The US, its largest market, suffered a 4.6 per cent fall in sales, while in the UK the drop was 0.6 per cent.

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