Jaguar Land Rover halts production in UK amid Brexit issues

Post Brexit the controversy surrounding the auto industry has been one of the hot topics and concerns for everyone. It has been sort of roller coaster with Tata owner JLR and the British government with the brexit related issues. Another home grown company, Rolls Royce has also warned of halting production at the UK facility sighting the same issues related to Brexit.

Assembly line at JLR plant
Assembly line at JLR plant

Tata Motors owned Jaguar Land Rover has announced plans to halt production for a week at its UK plants in April 2019 sighting the above reasons related to Brexit.

It was in July 2018, that Jaguar Land Rover Automotive announced that the UK Government needed to urgently provide certainty for business including guaranteed tariff-free access and frictionless trade with the European Union. In October 2018, Tata Motors, announced a turnaround plan for JLR which had been hit hard by trade tensions between China and the US, low demand for diesel cars in Europe and worries over Brexit. It was called ‘Project Charge’ and Tata Motors said it planned to cut costs and improve cash flows at Jaguar Land Rover by $3.2 billion in the next 18 months.

In December 2018, N Chandrasekaran, Chairman, Tata Motors Ltd. said, “JLR will continue to face global headwinds being experienced by the auto industry and to address them, the management is taking the right steps to drive operational excellence, whilst continuing to invest in innovative products and technology to stay competitive globally.” He in fact dismissed the rumours that Tata Motors was looking to divest its stake in JLR or discontinue the Jaguar brand.

“We have confirmed this year’s holiday dates to employees across all UK sites. As part of this, we have also confirmed that there will be an additional week of production stand-down 8th-12th April due to potential Brexit disruption,” a JLR spokesperson said.

It gets worse for the employees as a job cut amounting to 4500 positions are to be axed, this announcement comes along with the brexit news. JLR in total has 39,000 workers at its 4 sites in the UK. Britain is set to leave the European Union (EU) by the deadline of March 29 2019 but the process has been forever surrounded in controversy.

source : NDTV

JLR cars
JLR cars

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