JLR to CLOSE plant
September 24th, 2009 by Richard Aucock
JAGUAR Land Rover has just made the shock announcement that a Midlands plant is to CLOSE
Either the Solihull or Castle Bromwich plant is going to be axed – and the firm isn’t saying which yet.
However, the company added it does NOT see any compulsory redundancies.
The new comes on the same day Land Rover confirmed the baby Range Rover is to be produced from 2011, securing the future of the company’s Merseyside plant.
So why is a Midlands plant under threat? Because of overcapacity says JLR. Less than 60 percent of manufacturing capacity is being used, due to production being cut by a massive 100,000 over the past year.
This is because of a sales plunge of 30 percent.
‘The company swung from profit in 2007 to significant losses over the past 12 months,’ said a statement. ‘This was not a sustainable situation.’
Jaguar Land Rover CEO, David Smith said ‘this is a plan that recognises the impact the economic collapse has had on our business.
‘We are confident that a new more efficient and competitive structure combined with future investment will unlock the true potential of this business.’
Key changes are to start happening in the next year, he says – including new models in new segments, and both hybrid and electric models to cut CO2.
The unidentified Midlands plant will shut from 2014.
Further costs are also to be cut from the business, including pension restructuring, lower employment costs for new workers and the simplification of IT.
‘Further cost reductions include pension restructuring, lower employment costs for new hires and a focus on IT and business simplification. Volume growth, especially in emerging markets, combined with low-cost country sourcing will also reduce variable cost.’
Tags: jaguar, JLR, land rover
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