Currently reading: Jaguar Land Rover to cut production at two plants
British firm will scale back production at Castle Bromwich and Solihull factories as cost-cutting measure due to falling demand
James Attwood, digital editor
News
2 mins read
7 February 2020

Jaguar Land Rover is set to reduce production at its Castle Bromwich and Solihull factories in the coming weeks, as part of a range of cost-cutting measures introduced due to falling sales.

The British firm’s sales fell by 2.3% in the final three months of 2019, although the company actually posted an increased pre-tax profit. Jaguar Land Rover has introduced a new phase of its Project Charge cost-cutting and recovery programme, with the goal to save a further £1.1 billion - bringing total cost reductions to £4bn.

According to Reuters, Jaguar Land Rover will halt production at Castle Bromwich, where the Jaguar XE, XF and F-Type are produced, on selected days over a four-week period from late February until the end of March. It will also stop production on a number of half or full days at its Solihull plant, where the Range Rover, Range Rover Sport, Range Rover Velar and Jaguar F-Pace are built.

In a statement the company said: “The external environment remains challenging for our industry and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success.

“We have confirmed that Solihull and Castle Bromwich will make some minor changes to their production schedules to reflect fluctuating demand globally, whilst still meeting customer needs.”

Jaguar Land Rover has been particularly hit by falling sales of saloon cars and diesel-powered models in recent years. While the firm did have some sales hits in the final three months of 2019 – with Range Rover Evoque sales up 30% and Discovery Sport rising 9.2% – retail sales declined for every Jaguar model.

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Comments
21

7 February 2020
The next it's bad.

I don't know what to believe anymore.

8 February 2020
No-one has said this yet, so here goes:

This is yet another proof of how Boris and his Brexit cronies are destroying this country. They will have a lot to answer for in 5 years time. Not only is he ripping our economy apart and careering towards a no-deal Brexit, but he is setting up a toxic trade deal with Donald Trump that will see us eating chlorinated chicken and rat salad before you can say 'General Election'. The people want to remain in the EU and we are being dragged out against our wishes. Democracy has been killed off by the Conservative party.

8 February 2020
JMax18 wrote:

No-one has said this yet, so here goes:

This is yet another proof of how Boris and his Brexit cronies are destroying this country. They will have a lot to answer for in 5 years time. Not only is he ripping our economy apart and careering towards a no-deal Brexit, but he is setting up a toxic trade deal with Donald Trump that will see us eating chlorinated chicken and rat salad before you can say 'General Election'. The people want to remain in the EU and we are being dragged out against our wishes. Democracy has been killed off by the Conservative party.

You're simply incorrect.

This has nothing to do with Brexit, and everything to do with JLR's inept management.

EU rules are still in force, JLR are paying no tarrifs - they just do not have the products or quality they need to thrive. Which is 100% down to Mr (NOT Sir) Ralph Speth's management.

Not Sir, as his contribution, chiefly, to the UK automotive industry - has been to drive JLR into the ground.

8 February 2020
JMax18 wrote:

No-one has said this yet, so here goes:

This is yet another proof of how Boris and his Brexit cronies are destroying this country. They will have a lot to answer for in 5 years time. Not only is he ripping our economy apart and careering towards a no-deal Brexit, but he is setting up a toxic trade deal with Donald Trump that will see us eating chlorinated chicken and rat salad before you can say 'General Election'. The people want to remain in the EU and we are being dragged out against our wishes. Democracy has been killed off by the Conservative party.

In case you haven't realised it, this is a car magazine and the subject on this particular article being Jaguar Land Rover.

Sales of JLR were declining way before Brexit was even a phrase.

You'll notice no mention of production halting at the Slovakian factory... a factory the JLR started building BEFORE Brexit was thought of.

And for a manufacturer who predominantly sells high polluting diesel cars, it's the United nations who're responsible if you want to blame politcs for it was they was who introduced the new WLTP criteria. And it's your beloved EU who said any manufacturer not meeting C02 standards will be heavily fined. JLR at now up 5hit creek without a paddle because they don't do environmentally friendly cars - they should have, but they don't. You can blame your beloved JLR management for that.

I think Boris & Co. are a joke and the less said about Farage's mob the better, but you really are living in cloud denial-land if you think they are responsible for JLR's reductions in output.

PS - do you blame Boris and Brexit for a reduction in German car sales? or Spanish car sales? Or American car sales? Or Chinese car sales or... You have the cheek to blame Brexit, but you're the one who refuses to look outside our borders. Kinda ironic don't you think?

7 February 2020

No matter what (J)LR does, the Jaguar side of the business becomes an ever increasing thorn in its side.  Cost cutting in not the answer, in fact, although I can understand the motivation to attempt to bring their finances back in order.  Cost cutting hasn't really helped (J)LRs main problem and that is...

...the two brands are totally incompatible.  EVERY single Jaguar branded car is suffering from falling sales.  There is no real global market interest in Jaguar products.  So a failing brand has been shoehorned into a successful brand (at the time, anyway).  One of the biggest mistakes in the global car industry.  And then let's sell them all in the same nonedscript dealerships, stripped of any visual identity or passion for the brands.  Square, biege, boxes that could pass as M&S.Land Rover should have invested their money in growing their own SUV brands, without the pressure of developing so many Jaguar cars that have failed to stir the market.  Volvo will soon overtake (J)LR in sales of SUVs.  I warned that three years ago, yet money is still being invested in adding new bits of metal an buttons to Jaguar interiors, facelifts for myriad failing saloons.If there is one car which proves my point, however, more than any other, it is NOT the XE.  Its the E-Pace.  A shamful waste of time and effort. 

I'd also add that if Land Rover had developed cars to compete with the Tiguan, T-Roc and T-Cross, I am confident that Land Rover would be thriving today.  But the Land Rover brand, according to senior employees, doesnt need to move downmarket.  The current strategy isn't working so well. 

Cost cutting may have achieved some benefit, but until the Jaguar business is totally out of the (J)LR equation, the company can only ever hope to limp along.

Of course, the new Jaguar G-Pace is gonna change things, mind?  Phhhhhh.

7 February 2020
I would have thought there would be a demand or want for the Jaguar brand, they just need more of the right cars, unfortunately the right cars seem to be SUVs nowerdays which puts them in direct competition with Range Rover, Land Rover isn't meant to be a premium brand but is also now competing for a similar market, whilst I will openly admit to having no real knowledge on the subject, to my eyes all three brands SUVs seem to compete against one another rather than against different market segments. Surely they should be able to complement each other, VW and Audi succeed with similar crossover.

7 February 2020

Considering the last 5 new model releases from JLR were "make or break" according to Autocar - it's safe to assume they were break not make?

And a few days before Mr Speth's retirement was announced. Go figure.

Perhaps not quite the legacy at JLR Autocar were reporting?

7 February 2020

Yet so predictable.

7 February 2020
People like myself keep pointing out that JLR is in a death spiral and unfortunately, despite attempts at portraying their circumstances positively, the reality appears to continue to support our argument.

The business has made serious strategic mistakes without the reputational goodwill, market penetration or funding to weather them. In a time of major structural change in the industry, they can ill afford these issues and I'm sad to say it will be the death of them in their current form.

8 February 2020

wrote the article kissing Ralph Speth's backside! Top timing Steve! As I pointed out then, this is the real Speth legacy. They could cut Jaguar production for months. As I pointed out in the comments to Cropley's article, there are so many of them pre-registered on dealers forecourts with 10 miles on the clock and £10's of £thousands of the list price. 

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