Jaguar Land Rover cuts 1000 contract jobs due to diesel sales slump

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Britain's biggest carmaker is understood to be cutting output and not renewing the contracts of agency staff at its Solihull plant, while hundreds of permanent staff could be switched from its Castle Bromwich site to Solihull.

It said it was continuing to recruit large numbers of engineers and apprentices and it remained committed to its United Kingdom plants.

The announcement will fuel debate on the impact of Brexit on the industry, after the company pointed to the uncertainty around leaving the European Union, alongside the challenges facing diesel, when announcing the "temporary adjustments" to its production schedules at Halewood in January, home to the Range Rover Evoque and Land Rover Discovery Sport.

Those cuts were made at its Halewood plant in Merseyside.

An insider told Reuters that vehicle production at the company's factories in Solihull and Castle Bromwich would be cut, resulting in 1,000 agency workers losing their jobs.

Halewood is one of Tata-owned JLR's three United Kingdom plants.

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The company stressed it remains committed to its United Kingdom plants, having invested more than 4 billion pounds since 2010 to future-proof manufacturing technologies to deliver new models.

Latest employee figures say there are 3,200 people employed at the Castle Bromwich site and a further 10,000 at Solihull. A source told the Reuters news agency that 1,000 roles would be cut.

British new auto registrations have been falling for a year which the vehicle industry body has partly blamed on weakening consumer confidence in the wake of the Brexit vote, after record demand in 2015 and 2016.

When asked in March if there could be further production cuts at the carmaker's United Kingdom plants, Mr Speth told Ian King: "It's quite clear that if there's no demand, then we have to adapt our production levels".

Jaguar sales have fallen 26% so far this year and Land Rover dropped 20%.

Last year, global sales hit a record, but the company acknowledged that the United Kingdom market was "tough".

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