JLR boss reveals "all locations" in the UK will see job cuts, focused on management and administrative areas of the business

Jaguar Land Rover (JLR) has confirmed it will cut 4500 jobs from its UK workforce as part of a major cost-cutting programme aimed at building long-term, profitable growth.

The cuts account for around 10% of the Tata-owned company’s 43,000-strong staff across the country, which includes plants in Castle Bromwich, Solihull and Halewood. The job losses are in addition to 1500 workers cut last year.

Though the numbers of jobs cut at specific locations have yet to be announced, CEO Dr. Ralf Speth JLR has told the media on a conference call that "all locations" within the UK will see some form cuts, focused on "the management and leadership areas of our facilities" Workers will initially be reduced through a voluntary redundancy programme, or via the offer of early retirement packages.

JLR CEO Ralf Speth said: "We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry."

Read more: Opinion - Why today could mark the first day of Jaguar's salvation

The announcement today by the UK’s largest car manufacturer follows falling demand for its saloon cars and diesel engines, along with a sharp fall in sales in China of 21.6% in 2018. As a result, it posted a loss of £90 million in the third-quarter of 2018.

The firm has also released its full year's sales figures for 2018, confirming an overall drop across both brands of 4.6% compared with 2017. Out of a total of 592,708 vehicles, nearly 181,000 Jaguars were sold (a modest 1.2% growth on 2017) and just under 412,000 Land Rovers (a 6.9% drop on 2017). 

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As well as the Chinese slump, JLR – and to some extent, the broader car market – has been affected by a number of other factors including Brexit, US trade tariffs, negativity around diesel and new WLTP regulations.

The job cuts form part of what JLR calls a “turnaround and transformation programme” which is set to improve cashflow and costs to save £2.5bn over 18 months.

JLR cut 1000 jobs at its Solihull plant – which it also shut down for two weeks in October last year due to reduced demand. In December, its Castle Bromwich site, which produces models including the XE and XF, operated on a three-day week.

No factory closures and electric investment

Despite the job losses, JLR has made no mention of any plans for immediate factory closures. Speth said he "refuses to comment" on such matters, saying "we have to wait for politics - what will happen after 29th March?" in another reference to the potential effect of a hard Brexit on production efficiency.

It did, however, confirm further UK investment in electrification with electric drive units to be made at its Wolverhampton powertrain plant from 2020. It said the move will help safeguard jobs at the plant as buyers move away from internal combustion engines.

There will also be a new battery assembly centre at Hams Hall, described as one of the largest of its kind in the UK, using new production techniques and technologies to produce battery packs and modules for future Jaguar and Land Rover models.

The focus on the production of electrified powertrains reinforces the firm’s announcement in 2017 that every JLR vehicle launched from 2020 will have an electrified variant. It already offers plug-in hybrid Range Rover and Range Rover Sport models, as well as the well-received electric Jaguar I-Pace

New models on the cards

There was also no mention of any plans to scrap any of JLR's 13 model lines in the announcement. Autocar sources also suggest that the firm is continuing to evaluate entering new segments where premium growth is likely.

This year, the second-generation Range Rover Evoque will go on sale and the highly anticipated new Land Rover Defender will be revealed. Further down the line, an electric Jaguar XJ is expected as is a J-Pace, a large SUV to sit at the top of Jaguar’s growing SUV range. 

Most growth is expected through its SUVs, which tallies with the broader market trends, while the biggest question mark is over Jaguar’s saloon range which has struggled against German rivals.

Jaguar Land Rover sales fell 4.6% last year to 592,708 units. UK sales were down a modest 1.5% to 115,691, while China was worst hit. Sales there fell 21.6% from 146,399 units to 114,826 units. That means both Europe and North America now lead sales for JLR, putting China in third place. By comparison, in 2017, Chinese sales topped JLR’s chart.

The company said it remains fully committed to the Chinese market and added it has long-term confidence in the Chinese market. The recent fall is being blamed on ongoing uncertainty on import duty charges and trade tensions.

Read more

Jaguar Land Rover to electrify every model from 2020

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Comments
26

10 January 2019

Will this transformation involve the sacking of the management?  It is solely they who are to blame.  I expect them to go as soon as the new owner buys JLR, so they might as well leave now rather than being asked to soon.

10 January 2019

...And they can't enter new segments as that would require massive investment in new models (which is what they do need to do), and Tata cannot finance it.  Moody's has been pointing this out for some time, now.  Tata is being dragged down to 'junk' level by JLR, and this won't continue for too long, Tata won't allow it.  As I've been saying, I'm afraid the future for JLR (despite the Evoque and the iPace) is not good.  It's very sad, but the standard of management here in the UK is woeful.  The new owners (BMW or VW) will be good for JLR...if they invest massively, that is.

10 January 2019

The truth is that the factors principally behind this are 1) Trump (for his China trade war) and 2) the British Government (for their precipitous demonisation of diesel powertrain). Brexit is currently just the minor factor. I say that as a staunch remainer. Brexit will make this current crisis for JLR look rather minor. 

The management certainly are not to blame for the current problems. Instead they're handling things very well, with flawless logic, a sound message and great sensitivity. Except of course for the one individual that leaked this story early, giving us all an incredibly worrying morning today.

(P.S. Do your bit for Britain: buy Jaguar XE if you can afford one and then write to your MP and ask them to help ditch Brexit)

 

That bloke wrote:

Will this transformation involve the sacking of the management?  It is solely they who are to blame.  I expect them to go as soon as the new owner buys JLR, so they might as well leave now rather than being asked to soon.

11 January 2019
autoindustryinsider wrote:

The management certainly are not to blame for the current problems. Instead they're handling things very well, with flawless logic, a sound message and great sensitivity.

Is this irony? Do you not think that the planners, the strategists, the upper-management with their global -perspective and equally global salaries, should have clear road-maps for changing market conditions? I don't see any other brands so dependent on China and diesel, without widening their investments. Their range is confusing, cannibalistic and starting to get very creaky, apart from one or two stand-outs. These situations don't occur in a vacum. 

11 January 2019
autoindustryinsider wrote:

The truth is that the factors principally behind this are 1) Trump (for his China trade war) and 2) the British Government (for their precipitous demonisation of diesel powertrain). Brexit is currently just the minor factor. I say that as a staunch remainer. Brexit will make this current crisis for JLR look rather minor. 

The management certainly are not to blame for the current problems. Instead they're handling things very well, with flawless logic, a sound message and great sensitivity. Except of course for the one individual that leaked this story early, giving us all an incredibly worrying morning today.

(P.S. Do your bit for Britain: buy Jaguar XE if you can afford one and then write to your MP and ask them to help ditch Brexit)

Trump has nothing to do with JLR's poor sales in China or globally come to that, the Government didnt demonise Diesel one of the most powerful companies in the EU did - VW. Brexit has nothing to do with this, thes cuts have been on the cards since  at least 2010. 

But seing as you are a remainiac, you have to blame something, I suspect you think Jezza will make it all better if he ever becomes PM.

The management and in particular the current design team are totally to blame, the XE and XF are shocing, both inside and out, the XJ is a dinosaur, and dont even get me started on the Discovery, and the lack of a proper defender, not the thing we are about to get labeled a defender.

Do your bit for Britain, buy a Nissan or Honda or a Toyota that is built in the UK, and tell your MP, we voted to leave, now get on woth it, and at the election vote anyone but Labour. 

 

10 January 2019
Was anybody else shocked that JLR has 40,000 employees while Ford has 53,000?

10 January 2019

They are basically cutting jobs in the UK & hiring new workers in the EU, I-pace & E-pace made in Austria & Defender, Dicovery made in Slovakia.

(Thanks Nigel & Boris for getting us in this mess)

10 January 2019
jagdavey wrote:

They are basically cutting jobs in the UK & hiring new workers in the EU, I-pace & E-pace made in Austria & Defender, Dicovery made in Slovakia.

(Thanks Nigel & Boris for getting us in this mess)

Just for clarity Slovakia move decision was before any vote

10 January 2019
xxxx wrote:

jagdavey wrote:

They are basically cutting jobs in the UK & hiring new workers in the EU, I-pace & E-pace made in Austria & Defender, Dicovery made in Slovakia.

(Thanks Nigel & Boris for getting us in this mess)

Just for clarity Slovakia move decision was before any vote

Exactly. And don't insult our intelligence by claiming that Nigel & Boris were responsible - it was 52% of the British public who voted for Brexit.   

FM8

10 January 2019
scotty5 wrote:

xxxx wrote:

jagdavey wrote:

They are basically cutting jobs in the UK & hiring new workers in the EU, I-pace & E-pace made in Austria & Defender, Dicovery made in Slovakia.

(Thanks Nigel & Boris for getting us in this mess)

Just for clarity Slovakia move decision was before any vote

Exactly. And don't insult our intelligence by claiming that Nigel & Boris were responsible - it was 52% of the British public who voted for Brexit.   

Thicko vote leave cxnts...

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