Under Fire From Multiple Foes, Jaguar Land Rover to Cut 4,500 UK Workers

under fire from multiple foes jaguar land rover to cut 4 500 uk workers

For now, Tata-owned Jaguar Land Rover isn’t saying whether any of its British plants will close as a result of the automaker’s cost- and job-cutting spree, nor whether we’ll see a shedding of models from its portfolio. Many would argue there’s some Jags in need of cutting.

With global sales falling 4.6 percent in 2018, the automaker claims the next phase of its “Charge and Accelerate” transformation plan will leave 4,500 UK workers out of a job.

JLR’s plan is to free up nearly $3.2 billion in costs and cash flow over the next 18 months, helping it realize long-term profit growth while creating a “leaner, more resilient organisation.” It’ll certainly be leaner on the personnel side — 2018 saw an additional 1,500 UK workers laid off. The latest cuts, some accomplished through a voluntary redundancy program, amount to 10 percent of the automaker’s UK workforce.

Dr. Ralph Speth, JLR CEO, called the cuts a response to “multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.”

Basically, JLR’s in a bind the world over. The company’s Chinese-market sales took a steep tumble in 2018, falling 21.6 percent. Meanwhile, Europe’s sudden pivot away from diesel-powered vehicles left the company holding a dirty bag. Its Jaguar car range no longer resonates with many North American buyers, and trade uncertainties and the ongoing Brexit saga only adds to the company’s woes. The company’s profits turned to losses in 2018.

While the automaker didn’t mention the fate of specific products in its announcement, it’s generally believed that cuts are coming to Jaguar’s model range, spurred by the public’s move away from sedans. Rumors last year suggested the company might be considering an all-electric Jaguar range. Certainly, JLR took the opportunity today to talk up green investments born of newfound savings.

“These investments include today’s announcement that, from later this year, next-generation Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton,” the company stated. “The Battery Assembly Centre will be one of the largest of its kind in the UK, using new production techniques and technologies to manufacture battery packs for future Jaguar and Land Rover vehicles.”

[Image: Jaguar Land Rover]

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  • Art Vandelay Art Vandelay on Jan 10, 2019

    Is that the Explorer ST? Oh wait.

  • Tstag Tstag on Jan 11, 2019

    Most of JLRs problems are short term: China - likely to be resolved shortly pending US/ China trade agreement Brexit - could be solved by April Diesel - lots of hybrids and electric cars on the way at JLR Longer term issue is what to do with the XE. If Jaguar simply axe it then the XF sales will probably improve. These kind of cars don’t sell well in the US and their home market is saturated with cheap deals on 3 series and C class models. Electrifying Jaguar makes sense. Jaguar should focus on Sportscars, crossovers and the XJ. Land Rover can handle anything else.

  • Kurkosdr Someone should tell the Alfa Romeo people that they are a badge owned by a French company now.The main reason PSA bought FiatChrysler is that PSA has the technology to enter the luxury market but customers don't want a French luxury car for psychological/mindshare reasons. FiatChrysler has the opposite problem: they have lots of still-respected brands but not always the technology to make good cars. Not to say that if FCA has a good platform, it won't be used in a PSA car.In other words, if those Alfa Romeo buds think that they will remain a silo with their own bespoke platforms and exclusive sheet metal, they are in for a shock. This is just the start.
  • Arthur Dailey For the Hornet less expensive interior materials/finishings, decontent just a little, build it in North America and sell it for less and everyone should be happy with both the Dodge and the Alfa.
  • Bunkie I so wanted to love this car back in the day. At the time I owned a GT6+ and I was looking for something more modern. But, as they say, this car had *issues*. The first of which was the very high price premium for the V8. It was a several thousand dollar premium over the TR-7. The second was the absolutely awful fuel economy. That put me off the car and I bought a new RX-7 which, despite the thirsty rotary, still got better mileage and didn’t require premium fuel. I guess I wasn’t the only one who had this reaction because, two years later, I test-drove a leftover that had a $2,000 price cut. I don’t remember being impressed, the RX-7 had spoiled me with how easy it was to own. The TR-8 didn’t feel quick to me and it felt heavy. The first-gen RX was more in line with the idea of a light car that punched above its weight. I parted ways with both the GT6+ and the RX7 and, to this day, I miss them both.
  • Fred Where you going to build it? Even in Texas near Cat Springs they wanted to put up a country club for sport cars. People complained, mostly rich people who had weekend hobby farms. They said the noise would scare their cows. So they ended up in Dickinson, where they were more eager for development of any kind.
  • MaintenanceCosts I like the styling of this car inside and out, but not any of the powertrains. Give it the 4xe powertrain - or, better yet, a version of that powertrain with the 6-cylinder Hurricane - and I'd be very interested.