Brexit: Jaguar Land Rover to cut 1000 contract jobs

Jaguar Land Rover to cut jobs and production – and to blame Brexit

Jaguar Land Rover is to shed 1,000 jobs and cut production at two sites, according to reports.

It continued: "We are, however, continuing to recruit large numbers of highly skilled engineers, graduates and apprentices, because we are over-proportionally investing in new products and technologies".

The luxury carmaker said the "review" of its production schedules is being undertaken to ensure market demand is balanced globally and that it will lay out its 2018-19 production plans to the workforce on Monday.

The move comes days after JLR reported a rise in sales over the past 12 months, despite weaker conditions in the United Kingdom and Europe.

Speaking to Sky's Ian King in March, chief executive Ralf Speth had said: "The economy is weaker in the United Kingdom than in any other European country but it's also quite clear that the diesel discussion, additional taxes on the latest technology have created a reaction in the consumer base".

Jaguar sales were down 26% to the end of March while Land Rover demand dropped 20% during the same period. Diesel demand fell by 37.2% last month.

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Some staff roles will also be moved from Castle Bromwich to Solihull.

Last year, JLR's British plants - which also includes the factory in Halewood - produced 532,107 vehicles last year.

The automaker saw a 26% drop in sales in the United Kingdom in the first three months of 2018 while sales in Germany fell 32%.

JLR said in January that it would cut production numbers at its Halewood plant due to slowing new auto sales, which a company spokesman linked to "concern around the future of petrol and diesel engines" and "general global economic and political uncertainty".

Last year, global sales hit a record, but the company acknowledged that the United Kingdom market was "tough".

Dom Tribe, automotive sector specialist at management consultancy Vendigital, said: 'This decision by Jaguar Land Rover is a further sign of ongoing uncertainty in the automotive industry. JLR blamed the continuing uncertainty over diesel for the downturn.

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