China trade tensions and import duty changes blamed for decline in overseas demand
Tom Morgan, Online Reviews Editor
22 October 2018

Jaguar Land Rover's Solihull factory has begun a planned two week shutdown, following a significant decline in global sales in September.

The company had already begun adjusting the output of its factories in response to market demand, with 2000 workers at the Castle Bromwich factory responsible for the Jaguar XE, XF and XJ saloons moving to a three-day working week until after the Christmas period. The Solihull plant shutdown will last for two weeks until the 5th of November, with no jobs affected by the closure and customer cars would still be delivered on time.

“As part of the company’s continued strategy for profitable growth, Jaguar Land Rover is focused on achieving operational efficiencies and will align supply to reflect fluctuating demand globally as required,” a JLR spokesperson said. “The decision to introduce a two-week shutdown period later this month at Solihull is one example of actions we are taking to achieve this.

“Customer orders in the system will not be impacted and employees affected will be paid for the duration of the shutdown.”

Worldwide sales of 57,114 cars in September was a 12.3% decrease compared with the same month last year, despite what JLR calls “strong” demand for new luxury models such as the Range Rover Velar and the electric Jaguar I-Pace.

The Chinese market suffered the biggest decline, at a significant 46.2% - a slip the company blames on changes in import duty and continued trade tensions holding back consumer demand. European numbers also decreased by 4.7%.

JLR’s UK sales fell by just 0.8% in September, bucking the industry-wide decline of 20.5%. Several factors can be attributed to the slump, including shrinking demand for diesel models, reduced interest in saloon cars and ongoing Brexit uncertainty.

Our Verdict

Jaguar I-Pace 2018 road test review hero front

It looks the part, promises 0-60mph in 4.5sec, has a near-300 mile range, and is among the first luxury EVs to arrive from an established brand. Can the I-Pace topple Tesla?

Find an Autocar car review

Driven this week

Unite, the UK’s biggest union for car workers, said a “triple whammy” of Brexit uncertainty, government confusion over diesel and ministers’ half-hearted support for electric vehicles was threatening the future of the UK car industry.

“Government ministers’ trashing of diesel, despite the UK making some of the cleanest engines in the world, combined with their shambolic handling of Brexit, is damaging the UK car industry and the supply chain,” Unite national officer Des Quinn said. “Over the past decade, Jaguar Land Rover workers have worked tirelessly to turn the car maker’s fortunes around. Ministers now risk turning them and their colleagues in the supply chain from hero to zero.”

Jaguar Land Rover CEO Ralf Speth has previously condemned the lack of certainly in the market, saying that if the right Brexit deal is not secured, “tens of thousands” of jobs could go at the firm. The company currently employs 40,000 people across the UK, with many more linked through JLR's supplier network.

The company has refused to rule out more permanent changes, saying it is "continuing to over-proportionally invest in new products and technologies and are committed to our UK plants, in which we have invested more than £4 billion since 2010, to future-proof manufacturing technologies to deliver new models.”

READ MORE

Jaguar Land Rover factory staff to move to three-day week

New 2020 Land Rover Defender spied testing on public roads

Jaguar Land Rover boss: hard Brexit will cost jobs

Join the debate

Comments
48

8 October 2018

The sales drop in China is the biggest factor here. JLR will have to start making more models in China I suspect.

9 October 2018
Damn Chexit!!!

22 October 2018
jason_recliner wrote:

Damn Chexit!!!

 

This has probably been explained to you before, and gone over your head, but let me try and explain one more time...

Given all the other economic and industry pressures facing the company at the moment, JLR needs Brexit like a hole in the head.

In fact, the issues affecting China should make us all even more wary about cutting off access to the massive single market on our doorstep.

Is this sinking in at all?

22 October 2018
scrap wrote:

Bremoan, bremoan, bremoan...

Blah, blah, blah...

Is this sinking in at all?

Nope! Still think you're wrong, still think Brexit is a good idea (the fact it is supported by the working class and not big business and elites, alone, tells me I'm on to something), still wish Australia was powerful enough to try things like it.

Here's a thought. All the corporations threatening to pull out in the event of a hard Brexit should commit to remaining and not cutting any more jobs, at all, if a deal is struck.

Here's another thought. Instead of making threats and blackmailing England, multinationals should be working on sourcing parts and materials from local suppliers. You know, create some new jobs in England, which surely was an objective of Brexit.

9 October 2018

 

China are reducing their import tarriff on cars, so buyers there are delaying buying untill after the new tarriffs come in to effect.

So sales should bounce back and even increase afterwards.

 

8 October 2018

#sigh# with JLR its always someone else's fault. Brexit, leaves on the line, sun spots, Chinese losing their credit cards, etc, etc

In Norway there is a 2 year waiting list for the Hyundai EV SUV, its what happens when you make things sensibly priced.

8 October 2018
The Apprentice wrote:

#sigh# with JLR its always someone else's fault. Brexit, leaves on the line, sun spots, Chinese losing their credit cards, etc, etc

In Norway there is a 2 year waiting list for the Hyundai EV SUV, its what happens when you make things sensibly priced.

 

You are in denial. Brexit is a massive threat to UK car industry and it’s not just JLR who are saying so.

You are entitled to your opinion about Brexit, but Leavers are very bad at accepting the facts.

The single market revitalised car manufacturing in the UK - a cursory look at the figures will tell you that. Leaving will cause huge job losses.

289

8 October 2018

.....interesting that they quote that Brexit is 'effecting the supply chain'.......clever trick that seeing as we havent left yet!

8 October 2018
scrap wrote:

The Apprentice wrote:

#sigh# with JLR its always someone else's fault. Brexit, leaves on the line, sun spots, Chinese losing their credit cards, etc, etc

In Norway there is a 2 year waiting list for the Hyundai EV SUV, its what happens when you make things sensibly priced.

 

You are in denial. Brexit is a massive threat to UK car industry and it’s not just JLR who are saying so.

You are entitled to your opinion about Brexit, but Leavers are very bad at accepting the facts.

The single market revitalised car manufacturing in the UK - a cursory look at the figures will tell you that. Leaving will cause huge job losses.

So please explain how "Brexit" is affecting Chinese sales? 

Remainiacs really are the most pessimistic people in the country, but help is available https://www.samaritans.org/ 

22 October 2018
scrap wrote:

The Apprentice wrote:

#sigh# with JLR its always someone else's fault. Brexit, leaves on the line, sun spots, Chinese losing their credit cards, etc, etc

In Norway there is a 2 year waiting list for the Hyundai EV SUV, its what happens when you make things sensibly priced.

 

You are in denial. Brexit is a massive threat to UK car industry and it’s not just JLR who are saying so.

You are entitled to your opinion about Brexit, but Leavers are very bad at accepting the facts.

The single market revitalised car manufacturing in the UK - a cursory look at the figures will tell you that. Leaving will cause huge job losses.

 

Give it a rest.

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week