Jaguar Land Rover is cutting back production at its Jaguar Castle Bromwich plant for the rest of the year to address falling demand for cars – with both Brexit and diesel car uncertainty behind the move.
The plant, which builds the Jaguar XE, XF, XJ and F-Type, is being put on a shortened three-day week until Christmas, a move the firm describes as “temporary”.
JLR says the review is part of standard business practice to “ensure market demand is balanced globally.
“In light of the continuing headlines impacting the car industry, we are making some temporary adjustments to our production schedules at Castle Bromwich.”
JLR has already cut back staffing numbers from 3,000 to 2,000, according to local Erdington MP Jack Dromey.
The Labour MP says “Brexit chaos and the mishandling by Ministers of the transition from diesel… now threatens the jewel in the crown of British manufacturing excellence”.
The historic Castle Bromwich @Jaguar plant will now go onto a 3-day week until Xmas, a combination of #Brexit chaos and the mishandling by Ministers of the transition from diesel. #Brexit now threatens the jewel in the crown of #British manufacturing excellence @BBCNews
— Jack Dromey MP (@JackDromeyMP) September 17, 2018
In November 2017, chancellor Philip Hammond announced a range of tax increases penalising diesel. The measures generated a frustrated response from the automotive industry and sales of new diesel cars have been rapidly falling throughout 2018.