Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Jaguar, Land Rover, Earnings/Financials, UK, Tata
When the economy gets dinged, luxury vehicles gets massive dents. Jaguar and Land Rover haven’t been the most profitable aut for a while, and parent company Tata is studying which of two plants it would shut to try and stem some of the losses; Solihull or Castle Bromwich.
It sounds drastic, but the pain of closing a plant and shedding underutilized capacity – about 40 percent of JLR’s production overhead is going unused – could head off outright failure. Production has been pulled back already, while jobs have been cut and wages frozen, so word of the closing is just more bad news, but Jaguar Land Rover CEO David Smith is committed to taking “decisive actions” to see the storied marques through. The union, of course, is unhappy, and a meeting will be going forward between the company and GMB officials to determine what actions might be taken on both sides.
[Source: Automotive News - Sub. Req. | Image Source: Paul Ellis/AFP/Getty]
Tata confirms closing of Jaguar or Land Rover plant originally appeared on Autoblog on Thu, 24 Sep 2009 17:33:00 EST. Please see our terms for use of feeds.
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Tata confirms closing of Jaguar or Land Rover plant – UK Auto News
