A drop in sales figures has forced the Tata-owned Jaguar and Land Rover (JLR) to cut production of utility vehicles and redeploy about 300 workers, the British media reported today.
“Two shifts have been lost at Solihull, the main Land Rover production centre, and three will be cut next month at the Halewood factory on Merseyside, where the Jaguar X-Type is assembled,” a report in The Sunday Telegraph said.
JLR has also transferred about 300 staff from Solihull to the Jaguar production line at Castle Broomwich because there is no work for them, the report added.
Due to the weakening demand, JLR is reviewing Land Rover production on a monthly basis. The vehicle’s sales so far have shown only a three per cent fall from 226,000 last year, but as overall demand dips by 30 per cent in the sectors in which it competes, JLR is being cautious, it added.
Land Rover sales slumped by 31 per cent in the US market in the year up to July but strong demand in Russian and Chinese economies almost offset the sharp fall.
Uncertainties about the outlook at Land Rover will slow the recovery in JLR profits. Last year, the Rover accounted for all of JLR’s $650 million profits and almost all of the first quarter’s $421 million.
