Jaguar Land Rover job cuts cloud future of United Kingdom vehicle industry

Staff gather outside the Jaguar Land Rover site in Halewood Knowsley Merseyside

Image Staff gathered outside the firm's Halewood site ahead of the announcement

The company, which employs almost 40,000 people in Britain and has been boosting its workforce at new plants in China and Slovakia in recent years, declined to comment when contacted by Reuters on Thursday.

Tata-owned JLR, based in central England, said it will cut 4,500 out of 42,500 jobs, while Ford said it will slash "thousands" of jobs as part of an overhaul that could result in plant closures and the discontinuation of some models.

The company, owned by India's Tata Group, announced previous year a turnaround plan that calls for savings of 2.5 billion pounds in 18 months. "Falling sales in China due to global trade wars as well as changing consumer attitudes to diesel vehicles have been damaging".

The company also announced new investment in electric technology at its Wolverhampton engine manufacturing centre and the launch of a new battery assembly centre at Hams Hall, North Warwickshire. Will you be affected by the job cuts?

Commenting on the development, Ralf Speth, Chief Executive Officer of Jaguar Land Rover, said: "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".

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

Today's job losses come on top of cuts made previous year. "We have great belief in the potential of JLR's distinctive premium products and brands as well as in JLR's design and engineering capabilities", Tata Motors Chairman, N. Chandrasekaran said in late December.

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Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a flawless storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.

"Jaguar Land Rover is expanding a business-wide organisation review aimed at reducing the size of its global workforce by around 4,500 people".

"Britain's auto workers have been caught in the crosshairs of the Government's botched handling of Brexit, mounting economic uncertainty and ministers' demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence".

Diesel accounts for 90 percent of the firm's British sales and 45 percent of global demand, the company said a year ago, as demand in the segment tumbles following new levies in the wake of the 2015 Volkswagen emissions cheating scandal. The European Union has set lower limits for vehicle carbon dioxide emissions from 2021 that are pushing carmakers to include more electric vehicles in their future sales mix.

Britain's business minister Greg Clark said a no-deal Brexit would be a disaster for the firm.

Some 5,000 jobs cuts will be announced on Thursday, mainly in management, marketing and administrative roles, the BBC reported.

The FT reported that Ford's job losses will come as it bids to cut $14bn globally.

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