Despite positive global sales for JLR the automotive industry is facing a fall in demand for new cars in the UK and mainland Europe as well as concern over the future of diesel and petrol vehicles. Tony McDonough reports
Carmaker Jaguar Land Rover (JLR) is to temporarily cut production at its Halewood factory from three shifts to two amid falling demand for new cars in the UK and mainland Europe.
However, the company insists there will be no cuts to the workforce at the plant, which currently employs more than 4,000 people assembling the Range Rover Evoque and Land Rover Discovery Sport.
JLR enjoyed its seventh consecutive year of sales growth in 2017. But while global sales figures overall are positive, there are fears over falling demand in the domestic and EU markets. Demand for new cars in the UK fell 5.7% in 2017.
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Now JLR has told workers at Halewood there will be an “adjustment” to their shift patterns from mid-April until July which LBN understands will be a cut from three shifts to two.
In a statement, JLR said: “The automotive industry continues to face a range of challenges which are adversely affecting consumer confidence.
“Ongoing uncertainty surrounding Brexit is being felt by customers at home and in Europe where collectively, we sell approximately 45% of total UK production.
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“Add to this, concern around the future of petrol and diesel engines, and general global economic and political uncertainty and it’s clear to see why industry is seeing an impact on car sales.
“As is standard business practice, Jaguar Land Rover regularly reviews its production schedules to ensure market demand is balanced.
“Following a review of planned volumes we are planning to make some temporary adjustments to the production schedule at Halewood in Q2. These changes have been communicated to our workforce.”