Britain's biggest carmaker cuts 1,000 jobs

The UK's biggest auto manufacturer -- Jaguar Land Rover -- is cutting 1,000 jobs in its home market as Brexit and slu...

Posted: Apr 16, 2018 1:43 PM
Updated: Apr 16, 2018 1:43 PM

The UK's biggest auto manufacturer -- Jaguar Land Rover -- is cutting 1,000 jobs in its home market as Brexit and slumping sales hit the quintessentially British brand.

Jaguar Land Rover -- which is owned by India's Tata Motors -- employs about 40,000 workers in the UK who produce over 500,000 vehicles a year.

The company is cutting the jobs at a factory in Birmingham that manufactures the Jaguar F-Pace along with the Land Rover Discovery and various Range Rover models.

It said that a sharp decline in British car sales caused by a loss of consumer confidence contributed to the decision. Jaguar Land Rover's UK sales in March were down 26% compared to the same month last year. Car sales across the industry were down nearly 16%.

Brits have cut back on big-ticket purchases as their wages have been squeezed by a rise in inflation, a side effect of the Brexit referendum in 2016. A sharp drop in the pound following the vote made imported products more expensive and ultimately caused inflation to spike above 3%.

Related: Elon Musk promises Tesla will soon make money

Demand for Jaguar Land Rover cars has also fallen in Europe due to fallout from the diesel emissions scandal.

Jaguar Land Rover pointed out that "the huge drop in demand in diesels" led to its decision not to renew the contracts of 1,000 workers.

European governments are looking to clamp down on diesel sales after an outcry over the environmental damage caused by the engines. This has even led to calls for bans on heavily polluting diesel cars in some cities.

Drivers are holding off buying new diesel cars as they await clear government guidance on the future.

Related: German cities could ban some diesel cars

The UK's auto manufacturing sector employs over 800,000 workers but Brexit presents a big risk to the industry.

Carmakers rely on free, frictionless trade to get parts and make sales across the 28 nations in the European Union.

Jaguar Land Rover CEO Ralf Speth said earlier this year in an interview with Reuters that Brexit uncertainly was "really challenging" his company and the auto industry as a whole.

"You hardly see inward investment any more or every decision is taking longer," he said.

Auto makers are concerned that Brexit could lead to new tariffs, taxes and transit slowdowns at the UK border.

"A final deal that keeps our frictionless trade links with our biggest market, the EU ... is now a pressing priority," Mike Hawes, the head of the UK Society of Motor Manufacturers and Traders, said in a statement last month.

-- Ivana Kottasova contributed to this article

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 308737

Reported Deaths: 7139
CountyCasesDeaths
DeSoto20901250
Hinds19953410
Harrison17551302
Rankin13358276
Jackson13141243
Madison9949211
Lee9886170
Jones8308161
Forrest7537147
Lauderdale7221237
Lowndes6286144
Lamar613284
Lafayette6063117
Washington5288133
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Oktibbeha457097
Panola4456103
Pearl River4433141
Warren4294118
Marshall4283101
Pontotoc417572
Monroe4061132
Union404675
Neshoba4001176
Lincoln3883109
Hancock373385
Leflore3470124
Sunflower330789
Tate325082
Pike3205105
Scott311272
Yazoo304769
Alcorn298865
Itawamba297477
Copiah293965
Coahoma290378
Simpson289486
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Holmes186972
Clay183054
Stone179531
Clarke177576
Tallahatchie175940
Calhoun165231
Yalobusha159736
Smith159234
Walthall131043
Greene129633
Lawrence126623
Noxubee126533
Montgomery125742
Perry125238
Carroll120926
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Webster113732
Jefferson Davis105432
Tunica103025
Claiborne101330
Benton97425
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Franklin82723
Quitman78916
Choctaw73717
Wilkinson64928
Jefferson64828
Sharkey49817
Issaquena1686
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Alabama Coronavirus Cases

Cases: 521201

Reported Deaths: 10736
CountyCasesDeaths
Jefferson753981490
Mobile39011799
Madison34002496
Tuscaloosa25329444
Montgomery23996567
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Lee15567165
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Russell429338
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Escambia389574
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Marion3072100
Pike306176
Lawrence295395
Winston273072
Bibb256059
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Pickens233059
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Randolph177041
Monroe172440
Washington164738
Macon155548
Clay150055
Crenshaw149457
Cleburne146341
Lamar139634
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Wilcox124527
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Sumter103232
Coosa99428
Greene91334
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