LONDON:, owned by India's Tata Motors, today said it will cut 1,000 jobs and reduce production at two units as the UK's biggest carmaker blamed Brexit, slumping sales of diesel vehicles and regulatory issues for its woes.
Britain's biggest vehicle maker briefed staff about the cuts on Monday, confirming reports last week that it was reducing production as sales slump.
The company said that retail sales were 83,732 for March and 172,709 for the fourth quarter, down 7.8% and 3.8%, respectively, primarily due to lower United Kingdom sales, and to a lesser extent reduced sales in Europe. Recent figures from the trade body showed sales of diesels fell a whopping 37 per cent in March compared with the previous year.
"Weaker market conditions in the United Kingdom and Europe, driven by lack of consumer confidence and lower demand for diesels, are impacting our growth", said Felix Brautigam, CCO at the Tata-owned carmaker. Additionally, even the uncertainty of Brexit is being seen as one of the reasons.
Though equipment and design updates are extensive, the flagships remain the same at their heart and continue to derive power from the same petrol and diesel engines that did duty in the outgoing models.
Premium automobile brand Jaguar Land Rover is UK's largest automobile manufacturer.
The company added that it would be moving 360 jobs to Solihull from the nearby Castle Bromwich plant, which makes the Jaguar XE, XF, XJ and F-Type.
The company issued a statement in response to speculation over the cuts: 'In light of the continuing headwinds impacting the vehicle industry, we are making some adjustments to our production schedules and the level of agency staff.
JLR said in its statement that it was continuing to recruit large numbers of highly skilled engineers, graduates and apprentices and remained committed to its United Kingdom plants.
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