Production cut at Tata's Jaguar in UK | autos | Hindustan Times
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Production cut at Tata's Jaguar in UK

autos Updated: Aug 24, 2008 09:55 IST

Drop in sales have forced Tata-owned Jaguar Land Rover (JLR) to cut production of the utility vehicle and re-deploy about 300 workers in the UK, a media report said on Sunday.

According to a report in The Sunday Telegraph, two shifts have been lost at Solihull, the main production centre and three will be cut next month at the Halewood factory on Merseyside, where the Jaguar X-Type is assembled.

JLR has also transferred about 300 staff from Solihull to the Jaguar production line at Castle Broomwich because there is no work for them, the report said.

JLR is reviewing on a monthly basis against background of weakening demand. Land Rover sales have so far shown only a modest 3 per cent fall from a record 226,000 vehicles last year but with overall demand down by 30 per cent in the sectors in which it competes, the company is being cautious, the report said.

Land Rover sales slumped by 31 per cent in the US market in the year till July but strong demand in the more buoyant Russian and Chinese economies almost offset the sharp fall.

Tata Motors has backed JLR's four-year investment and model programme as well as 700 million pounds outlay on environmentally friendly technologies, coupled with the recruitment of 600 engineers.

The Indian motor giant has, however, been forced to ditch the rights issue planned to help finance the 1.15 billion pounds paid to Ford for JLR because of share price weakness. It will look at asset sales as an alternative.

The uncertainties about the outlook at Land Rover will slow the recovery in JLR profits. Last year, Land Rover accounted for all of JLR's USD 650m profits and almost all of the first quarter's USD 421m.