Twin jobs blow to United Kingdom motor industry from Jaguar and Ford

Twin jobs blow to United Kingdom motor industry from Jaguar and Ford

The luxury carmaker, owned by India's Tata, says the cuts will be in addition to the 1,500 people who left the business in 2018.

The report said 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 firm said the move would help it cut about £2.5bn ($3.2bn) in costs over the next 18 months and prepare the company for a fearless new world of electric and autonomous vehicles.

This means nearly one in eight United Kingdom workers will lose their jobs at the luxury carmaker, which employs 44,000 workers across the country, including around 1,800 people at its engine plant at the i54 in Wolverhampton.

Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a ideal storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.

Details of job cuts are not expected until later in the year, although staff based at Warley in the West Midlands will move to Dunton in Essex. 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. Will you be affected by the job cuts?

Hundreds of Wolverhampton JLR workers were sent home on full pay in the run-up to Christmas, as production was slowed down in the wake of falling sales, while around 200 jobs were axed in Solihull.

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He said: "We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers".

New all-electric vehicles will be offered for all Ford models, while there will be a more "targeted" line up of models in the future.

Ford said it will seek to exit the family vans or MPV segment, review its operations in Russian Federation, and combine the headquarters of Ford U.K. and Ford Credit to a site in Dunton, Essex to achieve a 6 per cent operating margin in Europe.

He said the announcement was not directly linked to Brexit, but he added that Ford will have to undertake a further review if the United Kingdom leaves the European Union without a deal in March.

AM reported last monmth on reports that JLR would cut up to 5,000 jobs from its work force. Separately, Ford has warned that more than 7,000 engine and gearbox manufacturing and development jobs are under threat after the American company said it is shaking up its European operations.

"Jaguar Land Rover is expanding business-wide organisation review aimed at reducing the size of its global workforce by around 4,500 people". The company said it would start a voluntary buyout program and implement a flatter management system as it increases investment in areas such as electrification. Its new Slovakian factory has a capacity of 150,000. It is also working to ramp up its electric vehicle production.

The FT reported that Ford's job losses will come as it bids to cut $14bn globally.

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