Due to a big drop in the sales of its cars in China, Jaguar Land Rover has been forced to suspend operation in its Solihull Plant in the UK. The manufacturing facility employs 9000 people and all of them will be paid during the shut down period.
The decision of the production halt is taken after the company had to see a big drop in sales in the Chinese market. The company spokesperson has stated that the move has been made to adjust production to demand. JLR reported a huge 46 per cent drop in September sales in China and 12.3 per cent worldwide by year-on-year in September.
“As part of the company’s continued strategy for profitable growth, Jaguar Land Rover is focused on achieving operational efficiencies and will align supply to reflect fluctuating demand globally as required,” JLR says. It was also reported that the leadership in Tata Motors, the Indian parent company of JLR, is not happy with the performance of the company.
The anticipation of a cut in import duties and the ongoing trade tensions between China and the United States are forcing the customers to delay new vehicle purchases says the company. Felix Bräutigam, chief commercial officer, Jaguar Land Rover said, “Customer demand in China in particular has struggled to recover following changes in import tariffs in July and intensifying competition on price, while ongoing global negotiations on potential trade agreements have dampened purchase considerations.”
The Solihull plant in the UK which is shut down produces Land Rover Discovery, Jaguar F-Pace and Range Rover models including the new Velar.