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Jaguar Land Rover to cut output

Posted on 22 January, 2018
Jaguar Land Rover to cut output

Britain’s biggest carmaker Jaguar Land Rover will temporarily reduce production at its car plant in Halewood later this year due to weakening demand after Brexit and tax hiked on diesel cars. Jaguar Land Rover’s sales in Britain and Europe were flat in 2017, with the company’s sales director saying that the tough conditions will continue. The Halewood plant, which builds Range Rover models, is one of the Indian-owned automaker’s three production sites in Britain, which together build nearly one in three of the country’s roughly 1.7 million cars. “Ongoing uncertainty surrounding Brexit is being felt by customers at home and in Europe,” the company said on Monday. “Concern around the future of petrol and diesel engines – and general global economic and political uncertainty – and it’s clear to see why the industry is seeing an impact on car sales.” “Following a review of planned volumes, we are planning to make some temporary adjustments to the production schedule at Halewood in Q2.” Britain will increase the amount of vehicle excise duty (VED) paid by almost everyone buying a new diesel car from April, which will in turn hurt Jaguar Land Rover, as diesel accounts for around 90 per cent of sales.