JLR To Reduce Production At Two UK Plants Over Falling Demand
Jaguar Land Rover will both reduce as well as halt production on certain days at two of its UK factories over the next few weeks, as cost cutting measures become increasingly vital in the face of falling demand.
The British brand registered a 2.3% drop in sales in the final three months of last year, and is now looking to save billions of pounds in order to make up for the state of the Chinese market, but also less demand for diesels in Europe.
The solution, as reported by Autonews Europe, is for JLR to halt production on selected days over a four-week period at its Castle Bromwich plant (starting in late February), and then stop production on some half or full days at the nearby Solihull facility (until the end of March).
“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,” said the automaker.
“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.”
According to a company spokeswoman, this strategy has nothing to do with the Coronavirus outbreak, which led to FCA saying that a European plant could be shut down within two to four weeks if Chinese suppliers can’t resume work.
Models assembled at the Castle Bromwich factory include the Jaguar F-Type, XE, XF and XJ, while the Solihull plant builds Range Rover models and the Land Rover Discovery.