In response to a lack of demand for new models, Jaguar Land Rover has announced it’s cutting back production. Two of their British factories will either reduce or stop production entirely on certain days in the coming weeks. The company announced a 2.3% drop in sales for the last quarter of 2019, according to Reuters.
Jaguar hopes that the cutbacks in production will save them enough money to counteract lower-than-expected demand for diesel vehicles in Europe, as well as struggling sales in China. Production plants in Castle Bromwich and Solihull, both in England, will be affected. Some days will halt production altogether, while other days will become half-days.
“The external environment remains challenging for our industry and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success,” the company said in a statement. “We have confirmed that Solihull and Castle Bromwich will make some minor changes to their production schedules to reflect fluctuating demand globally, whilst still meeting customer needs.”
The company also stressed that the reduction of work was not due to the coronavirus. There is no concern about receiving parts from China. However, England (finally) leaving the European Union as part of Brexit will certainly take a toll on Jaguar’s short-term economics.
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