Why Jaguar Land Rover is idling its UK assembly plant
Why Jaguar Land Rover is idling its UK assembly plant
Jaguar Land Rover plans two-week closure as demand falls
09 October, 2018, 14:12
The scrip, after a weak opening, further tumbled to a low of Rs 170.65. At 12:50 hours IST, it was quoting at Rs 175.30, down Rs 37.45, or 17.60 percent amid high volumes on the BSE.
Jaguar Land Rover will close its plant in Solihull, England, for two weeks after the company reported a almost 50 percent fall in sales to China as import duties and a trade war with the USA hurt demand.
The company, which builds 500,000 Land Rovers, Range Rovers and Jaguars in the United Kingdom every year and employs 40,000 people, said that the plant would close this month.
Jaguar Land Rover has faced sliding diesel sales in recent months and has warned about the implications of Brexit, announcing job cuts and a three-day week at another facility.
Chinese sales almost halved, falling 46.2 per cent, with JLR blaming import duty changes and trade tensions for hurting consumer appetite. "Over the past decade, Jaguar Land Rover workers have worked tirelessly to turn the auto maker's fortunes around".
JLR's United Kingdom sales fell by just 0.8% in September, bucking the industry-wide decline of 20.5%.
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It took the decision after reporting a 46% slide in sales to customers in China, a key market for models made at the plant, where the production line makes Range Rovers and the Land Rover Discovery SUV.
Jaguar Land Rover (JLR) is set to shut down its Solihull plant for two weeks, blaming economic uncertainty and dampened demand for its cars in China. It attributed slower production plans to weakening global demand, especially in China, and weakness in diesel sales.
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