Jaguar Land Rover 'to cut 5000 jobs' as losses continue

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Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a ideal 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.

Sales of cars in China dropped by 6%, to 22.7 million, during 2018, according to the China Passenger Car Association (CPCA) in the market's first decline for two decades.

JLR also employs around 10,000 people in Solihull - its biggest factory - and around 3,200 at its Jaguar factory in Castle Bromwich, where a three-day week was introduced in the autumn.

Job losses, expected to be announced on Thursday, will mainly involved management, marketing and administrative roles but it is feared there could be some cuts in production too.

The electric cars will be built at its Wolverhampton engine plant and it will create a new battery assembly centre at Hams Hall near Birmingham as it develops a greener range of cars.

The company has boosted its workforce at new plants in China and Slovakia in recent years.

The Tata Motors-owned company has unveiled plans to cut costs and improve cash flows by 2.5 billion pounds including "reducing employment costs and employment levels".

Meanwhile Jaguar Land Rover says it will cut 4,500 jobs as the carmaker addresses slowing demand in China and growing uncertainty about the U.K.'s departure from the European Union.

Production-line staff will not be affected "at this stage", said the source. "This is in addition to the 1,500 people who left the company during 2018", the company said in a statement.

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Mr Armstrong said Ford was making "tough" decisions by undertaking a "complete review" of its European operations.

JLR's figures were also dented by the introduction of European emissions standards known as WLTP, which resulted in a fall in demand for diesel cars.

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

Jaguar Land Rover and Ford are preparing to implement cost cutting plans which will result in thousands of job losses for the UK's automotive sector.

Mr Quinn said Unite will scrutinise the business case for JLR's job cuts, and the union expects any United Kingdom redundancies to be voluntary.

"With record levels of new investment and models set to come on stream in its United Kingdom factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

Ford's Armstrong said pressure to build electric and hybrid cars had forced the auto maker to make choices about where to allocate its capital.

Beyond the £2.5 billion now being sought, rumours abound that Jaguar could be reincarnated as an all-electric brand in the not-too-distant future, better positioning it to deliver on future customer demand and lessening the burden it now places on the far-healthier Land Rover.

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