Autoworkers at JLR and Vauxhalls UK face thousands of job losses

 

Autoworkers at JLR and Vauxhalls UK face thousands of job losses

By
Margot Miller

24 December 2018

The UK’s biggest car maker, Jaguar Land Rover (JLR), is to carry out the first part of a £2.5 billion cost saving plan in the new year, threatening up to 5,000 jobs.

The plans were revealed by the Financial Times on December 15 and have not been denied by JLR. The newspaper reported, “During January the company will outline the short-term part of its plan, which will include job losses that run into the thousands, according to several people close to the company. The group has already shed 1,000 roles at its flagship plant in Solihull and reduced working hours at other sites amid falling demand for its diesel vehicles and saloon cars. Analysts are pencilling in up to 5,000 roles that may be lost, as the business is forced to take an axe to its workforce in order to survive.”

Employing 40,000 workers in the UK, JLR, owned by the Indian multinational Tata group, is acting following the posting of its first six months of losses in a decade. JLR was considered the flagship of a resurgent British auto industry since its takeover from Ford in 2008, with sales burgeoning year on year. In 2017 it sold 604,009 units, of which 431,161 were Land Rover vehicles and 172,848 Jaguar vehicles. In 2016, car production in the UK was the highest this century and JLR its biggest manufacturer, turning out one-third of the 1.7 million total vehicles produced.

By 2018, however, the company laid off 1,000 temporary contract workers at its two factories in the West Midlands and reduced hours at other sites due to falling global demand for diesel cars and its large saloon model, as well as uncertainties over Brexit. The falling pound after the 2016 European Union EU referendum Leave vote…

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