Midway through Thursday, Steve Fowler took to “Auto Express” to make claims that Jaguar Land Rover has successfully cut off 4500 jobs. Claims of this news remained in circulation as “The Washington Post” released pictures of hundreds of workers gathered at the gates of the Jaguar Land Rover site in Hale wood close to Liverpool, England. These pictures, however, drew much more attention to the claims.
Jaguar Land Rover (JLR) has confirmed this claims that it is cutting 4,500 jobs. However, most of this will come from its 40,000 strong UK workforce. Unfortunately, most of these cuts will be in office roles as the company is looking to simplify the structure of its management. The cuts stand as addition to the 1,500 job losses recorded the previous year.
It appears to the general public that Jaguar Land Rover is facing a number of challenges, including a decline in demand for diesel cars and a slowdown in China sales. Most importantly, the firm has complained about indecision caused by Brexit.
JLR which is owned by Indian conglomerate Tata recorded a £90m pre-tax loss three months before the end of September. This loss was a major reversal from the huge £385m profit made in the previous year
Ralf Speth, the chief executive of Jaguar Land Rover, said “The automotive company was taking a critical action to help deliver long-term development, even in the occurrence of a series of geopolitical and regulatory disruptions. In fact, the automotive industry firm is also facing technology challenges as well.
Having confirmed the reports made about the cuts, the JLR workers are in a ‘tense’ situation
The United Kingdom’s biggest vehicle maker, JLR, said it will be investing heavily in electrification, most importantly with electric drive units to be produced at Wolver Hampton. Alongside this, JLR will be making huge investments on the new battery assembly centre to be established at Hams Hall, Birmingham. This was made known as JLR made known various yearly and December 2018 sales figures: The Overall JLR retail sales in 2018 was 592,708 vehicles, relatively low by 4.6% as compared with 2017’s.
The BBC noted Retail Sales recorded for December as 52,160, was down by 6.4%, this was largely due to a slowdown in China. The Jaguar E-Pace and I-Pace introduced led to Jaguar’s best ever yearly sales results in 2018. The sales of these two models were up by 1.2% to 180,833. Furthermore, December wasn’t an all bad month as it recorded strong sales of 16,165, up by 7.2%. However, sales of the Land Rover models dropped by 6.9% to 411,875 due to shut down in sales in China and Europe. Land Rover Sales in December dropped by 11.4% to 35,995.
Jaguar Land Rover is planning a charitable dismissal scheme, to help manage the recent set of job cut
JLR has kept complaining for over a year, how that Brexit’s indecision would finally take its toll on the perception of the United Kingdom as an established and competitive base for worldwide production
In July 2018, the company said it would need a lot of assurance as regards the Brexit in order to keep investing in UK operations. However, the firm made it known that a “no-deal” Brexit would cost the company over £1.2bn in profit annually.
Although China stands as the biggest market for sales it has been showing signs of a collapse in its sales.
Also being one of the most heavily exposed car makers to ongoing consumer mix-up about the wisdom of purchasing a diesel car in the result of the Volkswagen emissions scandal.
However, a larger percentage of JLR’s vehicles are diesel-powered, even though it has been investing in the new set electric and hybrid vehicles.
However, the major factors responsible for the proposed job cuts include a slowdown in Chinese sales, a fall in diesel sales and eye-brows raising about UK effectiveness post-Brexit. For years, China has been the company’s leading and most profitable market. But sales in this market have taken a negative turn as nearly 50% of Chinese consumers have been holding back on making big-ticket purchases. The connection between JLR and its Chinese sales network have also felt the strain on the relationship as dealers have called for improved terms and promotional incentives. The issues at Jaguar Land Rover have arisen as the similar automotive industry, Ford is also on the lookout to cut back on its workforce figures in Europe also noted Auto Express.
Recently Jaguar Land Rover made it known that it would be moving all production of the Land Rover Discovery to a new plant in Slovakia. This change in production site also comes with plans to hire up to 3,000 workers. JLR is believed to have given much back to China as it has hired 4,000 workers here since 2014.