Jaguar Land Rover has announced that about 2,000 staff will move to a three-day week at its Castle Bromwich plant in the West Midlands, only hours after the carmaker was accused of “scaremongering” about the impact of Brexit by a Conservative MP. JLR, owned by the Indian conglomerate Tata, said it had made the decision to reduce production as it wrestles with difficult conditions in the automotive industry, caused by Brexit and slumping sales of diesel-powered cars. Staff are expected to work reduced hours until at least Christmas.
A spokesperson said: “In light of the continuing headwinds impacting the car industry, we are making some temporary adjustments to our production schedules at Castle Bromwich.
“We are, however, continuing to over-proportionally invest in new products and technologies, and are committed to our UK plants in which we have invested more than £4bn since 2010 to future-proof manufacturing technologies to deliver new models.”
The chief executive, Ralf Speth, has previously cited uncertainty over Brexit and confusion over government policy on diesel engines as factors limiting JLR’s prospects, after it cut 1,000 jobs at its Solihull plant in April.
He also warned last week that tens of thousands of jobs in the automotive sector would be at risk if the UK crashes out of the EU without agreeing an exit deal with Brussels. The company, which employs 40,000 people in the UK, has previously warned it would have to reconsider £80bn of UK investment over five years in the event of a no-deal Brexit because a disorderly departure from the EU would hinder access to the single market and disrupt the flow of car parts into the UK. The Castle Bromwich site makes the Jaguar XF, XJ and XE saloons and the F-Type sports car.
