Jaguar Land Rover to cut up to 5,000 jobs

Jaguar Land Rover to cut up to 5,000 jobs

Ford and Jaguar Land Rover unveiled sweeping job cuts across Europe on Thursday as auto makers struggle with a slump in demand for diesel vehicles, tougher emissions rules and a global economic slowdown led by China.

The BBC reports up to 5,000 employees could be cut at the company. Ford of Europe, based in Cologne, Germany, has 53,000 people working for it directly and 68,000 when joint ventures such as those in Russian Federation and Turkey are included.

"Given the difficulties that they're going through.to add further costs and further disruption from a no-deal Brexit, it's clear why they've been so clear that this would be against their interests", said business minister Greg Clark.

The commitment came as the company unveiled record sales figures, up 22 per cent in 2018 on the previous year.

"We can only allocate capital to areas where we can get a return on that capital".

In June, the company said it would move production of the Discovery sport utility vehicle to Slovakia from Birmingham, England, to make room for future electric cars. Executives have expressed fears that a no-deal Brexit could cost it as much as £1.2 billion, while Donald Trump's long-mooted tariffs on European vehicle imports could set it back a further £1 billion, JLR having sold a record 114,000 cars in the United States past year.

Ford's Armstrong said pressure to build electric and hybrid cars had forced the vehicle maker to make choices about where to allocate its capital.

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Ford lost $245 million in Europe in the third quarter as sales slumped in Turkey and Russian Federation.

The turnaround plan hinges around 2.5 billion pound cash savings, which will be materialised by cutting costs and improving cash flows. GM abandoned its Opel business in Europe after years of losses by selling it to France's PSA Group.

JLR is expected to confirm earlier reports that it plans to cut "up to 5,000 jobs" in the United Kingdom later today, while Ford has announced its own plans to cut "thousands" of jobs from its workforce across the region. "This is in addition to the 1,500 people who left the company during 2018", the company said in a statement.

Ford said Thursday that from now on every model will have a battery version, whether a hybrid that combines internal combustion and battery power or a battery-only version.

New all-electric vehicles will be offered for all Ford models, while there will be a more "targeted" line-up of models in the future. The carbon dioxide reductions are part of the effort to reduce emissions of greenhouse gases blamed for global warming.

The UK market slumped 6.8 percent, the worst since the global financial crisis, as Great Britain deals with the possibility of no real strategy to execute its exit from the European Union.

"The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence", said Jaguar Land Rover Chief Commercial Officer Felix Brautigam.

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