Jaguar Land Rover to temporarily close Solihull plant

Jaguar Land Rover will close its Solihull plant for two weeks at the end of October.

The car manufacturer said it will close the plant at the end of October due to the slowing demand in China.

“As part of the company’s continued strategy for profitable growth, Jaguar Land Rover is focused on achieving operational efficiencies and will align supply to reflect fluctuating demand globally as required,” said a spokesperson.

“Customer orders in the system will not be impacted and employees affected will be paid for the duration of the shutdown.”

September sales to customers in China fell by 46 percent. The car manufacturer blamed the fall in demand in China for the £264 million loss in the three months to the end of June.

The chief commercial officer of Jaguar Land Rover, Felix Bräutigam, said: “Customer demand in China, in particular, has struggled to recover following changes in import tariffs in July and intensifying competition on price, while ongoing global negotiations on potential trade agreements have dampened purchase considerations.”

Labour MP Jack Dromey has expressed concern over the latest decision.

“This is yet another worrying sign for the future of Britain’s automotive industry,” he said.

“Brexit chaos and the government’s mishandling of the transition from diesel pose a growing threat to the jewel in the crown of British manufacturing and the government is running out of time to save it.”

“[JLR chief executive] Ralf Speth warned of the looming consequences of a no-deal Brexit and we were told by wide-eyed Brexiteers that he was ‘making it up’.”

“It is imperative that the government sorts itself out and gets a deal from the EU that protects jobs and trade because tens of thousands of jobs depend on it,” he added.

The Solihull plant will close from 22 October.

The news comes just week’s after the manufacturer’s plans to move its Castle Bromwich plant to a three-day week.

 

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.