Jaguar Land Rover will shrink production output at its Halewood plant amid slowing domestic demand caused by Brexit uncertainty and consumer confusion over diesel.
A spokesman told Autocar the brand’s Merseyside facility would adopt temporary production schedule changes, which are designed to help “re-balance” the number of Range Rover Evoques and Discovery Sports available in the marketplace.
"Jaguar Land Rover has delivered another record breaking year in vehicle sales in what is now the seventh year of successive growth for Britain's largest car manufacturer,” said the spokesman. “However, the automotive industry continues to face a range of challenges which are adversely affecting consumer confidence.”
The UK new car market shrank by 5.7% in 2017, with experts pointing to the ongoing economic uncertainty that shrouds Brexit negotiations, as well as the more recent confusion created by the government’s diesel tax changes, which will increase rates for new models this April.
Jaguar Land Rover sales boss: Budget diesel taxation “counterintuitive”
JLR’s 2017 UK and European sales saw no growth compared with 2016, which are in contrast to the strong increases felt elsewhere as the brand recorded a 7% increase in production overall – bringing the total number to 621,109 cars.
“Ongoing uncertainty surrounding Brexit is being felt by customers at home and in Europe,” said the spokesman. "Concern around the future of petrol and diesel engines – and general global economic and political uncertainty – and it's clear to see why the industry is seeing an impact on car sales.”
JLR said its Halewood production changes were “standard business practice” and that the workforce had already been informed. It stated that the changes, which will see temporary adjustments to shift patterns, will come into force in quarter two of 2018.
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Sulphur Man
Confusion?
For anyone driving 1000 miles per annum or less in the UK, diesels are no longer fit for purpose.
JLR have a questionable reliability record. LR especially - a lot of owner dissastisfaction registered there.
The diesel Ingenium in the Disco Sport and Evoque is very prone to DPF regen issues, as the DPF is positioned too far from the engine block, and requires further driving time to heat and perform a regen cycle.
The Velar is not the sales success that LR expected.
The XE has not dented 3-series, A4 and C-Class sales
The XF is largely ignored
The F-Pace has done ok, but the E-Pace is too expensive, too heavy and too impractical.
There's no confusion - JLR are scaling back production due to poor performance, not Brexit.
Sulphur Man
Sulphur Man
Confusion pt 2
I meant 15000 miles per annum....
Sulphur Man
TStag
UK car market is in recession, Brexit/ Diesel to blame!
The JLR UK numbers are good. Don't forget the UK car market has been in recession for the last 8 months and I rather think Brexit and Diesel decline is a lot to do with it. The fact JLR's UK market share is inreasing is a minor miracle. Go look at everyone elses numbers!
eseaton
Who has ever said 'I'm
Who has ever said 'I'm uncertain about brexit, so I'm not going buy a new Land Rover'?
rhwilton
eseaton wrote:
No one. But a lot of multi-national companies will be saying "I need to plan my future work. Balancing the benefits of a weak pound to UK manufacturers against the possible drawbacks of tariff and non-tariff barriers is difficult."
Luap
.
I'd wager this is rather more about the 'Deisel' issue that it is about Brexit. But hey, greedy execs will use any excuse to stick their political oar in when it comes to Brexit..
Lanehogger
Only Halewood?
Interesting it's only the Halewood plant being affected as there's no mention of JLR's other factories reducing output, especially those producing SUVs. It's as if it's something either specific to the Evoque and Discovery Sport or something is being planned for the Halweood plant. Mind you if it's something specific to the Evoque and Discovery Sport, production of the E Pace, which shares those cars' underpinnings, appears to be unaffected in Austria. May be it is simply falling demand for the Evoque and Discovery Sport.
shortbread
JLR is bargaining with the Unions
JLR are using the 'downturn' as a bargaining chip with the Unions.
Firstly despite the E Pace using the same platform that is being manufactured in Halewood, cars are made in Austria and imported into the UK. E Pace is to built by Steyr in Austria and JLR in China.
Secondly the Evoque replacement is around the corner and the present gen numbers will start to dwindle. Considering Halewood only makes two modeld this will have a huge impact on volumes.
Thirdly, the Philip Hammond's rudderless diesl plans are killing sales in the country. Its the most pointless exercise that has achieved absoloutley nothing.
Combine these factors even before taking into account Brexit, one can see why Halewood has cut 3 shifts down to 2. I feel its a manufactured downturn so that the company has as many bargaining chips versus the unions.
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