Jaguar Land Rover boss says axing 4500 jobs is 'painful'

Jaguar Land Rover boss says axing 4500 jobs is 'painful'

"The next phase of this transformation programme will begin with a voluntary redundancy programme in the UK".

Jaguar Land Rover plans to make £2.5 billion of cost savings, the company has announced.

Wolverhampton South East Labour MP Pat McFadden said the redundancy plans were "very troubling", while JLR chief executive Ralf Speth said the firm was "taking decisive action to help deliver long-term growth".

Jaguar Land Rover's United Kingdom workforce has grown from around 17,000 to more than 40,000 in the last six years, at its sites including Whitley near Coventry, Halewood on Merseyside, Solihull, Castle Bromwich and Wolverhampton.

Diesel accounts for 90 percent of the firm's British sales and 45 percent of global demand, the company said past year, as demand in the segment tumbles following new levies in the wake of the 2015 Volkswagen emissions cheating scandal.

But sales in China have fallen almost 50% in recent months as cautious Chinese consumers have been holding back on big ticket purchases amid global trade tensions.

Brexit has been a particular drag on the UK.

Tata-owned JLR, based in central England, said it will cut 4,500 out of 42,500 jobs, while Ford said it will slash "thousands" of jobs as part of an overhaul that could result in plant closures and the discontinuation of some models.

On the JLR cuts, Mr Quinn said: "With record levels of new investment and models set to come on stream in its United Kingdom factories, we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

"One of the disadvantages of membership of the European Union is that it uses our money to move our jobs from the United Kingdom to other European Union countries".

Ford is now in talks with Volkswagen Group over a potential alliance, which could boost its strategic cost-cutting and boost its efforts to deliver an alternatively-fulled vehicle (AFV) drivetrain for each of its auto models.




Mr Armstrong said Ford was making "tough" decisions by undertaking a "complete review" of its European operations.

Unite national officer Des Quinn said: "Ford's workforce in the United Kingdom is world class in making and developing engines and gearboxes that are shipped all over the globe".

Japanese firm Honda later announced six non-production days in April under contingency plans to mitigate the risk of disruption to production at its Swindon factory after the United Kingdom leaves the EU.

"We expect the immediate impact on Ford's United Kingdom operations to be limited".

It is believed most of the job losses will affect JLR's managerial, research, sales and design staff. It's big business and one of the crown jewels in the UK's manufacturing landscape, which is why this story has led most TV news bulletins this morning.

But it's also spent millions of pounds trying to prepare for Brexit, which could have a disastrous effect on its European sales.

"Government ministers need to wake up and start doing more to support UK's vehicle workers and their colleagues in the supply chain if Jaguar Land Rover's recent success is to continue".

But the 2015 decision to shift the production of JLR's Land Rover Discovery vehicle from Solihull to Slovakia, which created 2,350 jobs in eastern European rather than the United Kingdom, has escaped criticism. Jaguar Land Rover is a much valued British company with a talented and dedicated workforce.

"The Government has, and will continue, to work closely with the business to ensure that it can succeed long into the future as it invests and transitions to autonomous, connected and electric vehicles".

The UK's biggest auto manufacturer Jaguar Land Rover announced on Thursday afternoon it is cutting 4,500 jobs, or about 10% of its workforce, in a bid to save money.

The auto manufacturer has been moving its production of the Land Rover Discovery model from its plant in Solihull, West Midlands to Eastern Europe since 2015.

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