A Combination of Poor Diesel Sales and Brexit Leads to Jaguar Land Rover Job Cuts and Reduced Production
The looming uncertainty of Brexit is becoming a real problem for the British car brandsby Kirby Garlitos, on
2018 hasn’t been a good year for Jaguar Land Rover. The automaker is reporting massive declines in sales volume as fears over Brexit begin to take hold of the company. The decline in demand for diesel models has also contributed to the stagnant sales, forcing the automaker to slash as many as 1,000 jobs and reduce production output in the U.K.
The slumping sales of diesel models have also put Jaguar Land Rover in a precarious position
We all knew this was coming. Ever since the U.K. decided to split from the European Union, a lot of industries will be affected. The auto industry is one of those industries, and unfortunately for Jaguar Land Rover, the looming uncertainty of Brexit is now affecting its bottom line. This is an issue that’s bigger than the car brands. Heck, it’s bigger than the whole industry. The global economy will shift once the U.K. officially splits away from the EU. Companies like Jaguar Land Rover can’t do anything but hold on and adjust to whatever comes out of the U.K.’s history-making exit away from the European Union.
The slumping sales of diesel models have also put Jaguar Land Rover in a precarious position. Like Brexit, there’s nothing the automaker can do about it. Demand for diesel models is down as the industry’s attention shifts towards hybrid and all-electric models. The only thing JLR can do is react accordingly to the changing winds happening around it.
On that end, the automaker’s decision to cut 1,000 agency jobs is seen as a reaction to what’s happening around it.
On that end, the automaker’s decision to cut 1,000 agency jobs is seen as a reaction to what’s happening around it. JLR already reduced production at one of its plants in January, but that didn’t involve actually cutting any jobs. This time, the automaker is taking it a step further, telling its staff at its factories in Castle Bromwich and Solihull that their contracts won’t be renewed.
"In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff,” JLR said in a statement. “We are however continuing to recruit large numbers of highly skilled engineers, graduates, and apprentices as we over-proportionally invest in new products and technologies."
This was a necessary move in the grand scheme of things. JLR needed to do something to address the issues swirling around it. It’s a tough blow to those who are getting laid off, but it’s a necessary move for the British automaker as it now starts to recalibrate its goals this year and in the future.
Read more Jaguar news.
Read more Land Rover news.