Jaguar Land Rover to slash United Kingdom jobs after China, diesel drop

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Jaguar Land Rover (JLR) is expected to announce plans to cut thousands of jobs as part of a £2.5bn plan to reverse losses.

The job cuts represented about 10 percent the company's workforce.

"Unite is positively engaging with Ford over its plans as we seek to safeguard jobs and look after the interests of all the company's employees in the UK".

Auto giant Jaguar Land Rover is to reduce its 44,000 workforce by 4,500 under plans to make £2.5 billion of cost savings.

Brexit has made the future of the UK's vehicle manufacturing industry uncertain, with Toyota and Vauxhall among those to warn of negative impacts in the event of a hard Brexit.

Later this year, the company would start producing the next generation electric drive units (EDU) at its engine manufacturing centre in Wolverhampton.

"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", said JLR's chief executive, Ralf Speth.

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Today's job losses come on top of cuts made previous year.

Jaguar Land Rover, which is owned by Tata Motors and employs around 40,000 people in Britain, on Thursday reported a 4.6 per cent drop in full-year sales to just under 600,000 vehicles.

The British automaker lost £90 million ($160 million) during the third quarter of 2018 thanks primarily to a big sales dip in China, Brexit-related woes, and reduced demand for diesel-powered vehicles and traditional sedan models.

Apple and Jaguar Land Rover are not alone in their fight to adapt and survive in the current Chinese economy.

The company said in July a year ago that it needed more certainty around Brexit in order to continue investing in its United Kingdom operation.

Governor of the Bank of England Mark Carney said the probability of a no-deal Brexit is "uncomfortably high".

If, as expected, the United Kingdom bears the brunt, or the entirety, of JLR's global cost-cutting, JLR may well say it tried to warn us.

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"Revealing the iconic Defender, investing in cleaner, smarter, more desirable cars and electrifying our facilities to manufacture a future range of British-built electric vehicles will all form part of building a globally competitive and flourishing company", he added.

But sales there have fallen almost 50% in recent months as cautious Chinese consumers have been holding back on big ticket purchases. However, amid China demand concerns, the company had witnessed a silver lining in the USA sales, with numbers improving almost 24 percent in December.

The automaker said it would start off by offering voluntary redundancies to United Kingdom workers.

Another massive flashing red light is a collapse in sales in its biggest market - China.

In China it has hired 4,000 workers since 2014.

Jaguar employs 44,000 workers at sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton in the West Midlands.

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