As the demand for diesel cars drops in the United Kindom, and falling sales in China, Jaguar Land Rover will cut up to 5,000 jobs in order to keep the company afloat. The carmaker is also allegedly fearing the Brexit.
As part of a £2.5 billion savings plan, the British carmaker will be cutting 5,000 jobs of the 40,000 they currently employ in the United Kingdom. According to The Guardian, the company has already cut 1,000 temporary contract workers at its plant in Solihull, which builds Range Rovers and the Land Rover Discovery SUV. Jaguar Land Rover has also reduced working hours for some workers, including at its Wolverhampton factory in the run-up to Christmas.
The job cuts come amidst a £90 million loss in the three months leading up to September. The loss was spurred by falling sales in China and Europe.
In an attempt to turn around its ailing fortunes the company announced plans in October to save £2.5 billion, including £1 billion of cost cuts, but did not say how many jobs would be lost. However, according to a report in the Financial Times, several people close to the carmaker said JLR will outline in January the short-term element of its plan, including the loss of up to 5,000 jobs. –The Guardian
The carmaker said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing charge and accelerate transformation programmes. As announced when we published our second-quarter results, these programmes aim to deliver £2.5bn of cost, cash and profit improvements over the next two years. Jaguar Land Rover does not comment on rumours concerning any part of these plans.”
Although the job cuts are estimates, JLR is not the only carmaker that has said it will need to lay off workers and cut jobs to remain in business. The tariffs put in place by the Trump administration caused Ford to lose $1 billion, which will result in job cuts. General Motors has also said that they will need to cut jobs and restructure the business if they want to continue. GM says that they will have to cut 14,000 jobs as sales slump, costs go up, and profit losses continue.
The “everything bubble” could be well on its way to bursting, as news such as this usually precedes economic downturns.
God, everything is an inch away I tell you all. Plus the average person has no money. We are paid like it is around 1985 or something – it is so damn wrong and disgusting and Corp And Gov’t GREED & Antics has caused a lot of this mess. We need a re-set, purge, start-over and do things right but you know that will also NOT happen, so I don’t know. It is Not at all pretty and will be a genuine cluster. . .
It started with “trickle down” as both the culture (abandoning labor) and economics (deregulation) took form. NAFTA ( euphemism for Free Trade) and eviscerating Glass-Steagall which returned Wall Street & Bankers to their pre great depression largely unregulated free for all. Say these truisms and you’re labeled a communist when in fact you are just stating fact.
Kevin2, I used to get labeled as a commie sometimes when trying to sell someone the truth. It does feel like 1929 up to a point.
CC, you mean a real clusterf#$%. Agreed, it’s nothing nice and will be a rough ride. Fasten your seat belt.
Rover fagged-out in making their new Discovery a unibody instead of body-on-frame.
I doubt tariffs are the cause of either GM or Ford sales dropping.
But it’s interesting that this tariff blame is being tossed into an article regarding British car makers that aren’t affected by them, either negatively or positively.
Maybe a small share but GM has failed miserably with the Volt and a couple of other models. A lot of folks are going to get pink slips. Five thousand layoff at Jaguar is a harbinger of things starting to wind down there.
Heres your trouble
I would wager it is a lot more than just tariffs. Tariffs are not causing the kill off of sedans. The younger buyers like the small SUVs, as do many of the older buyers with grandchildren. A larger number of the millennial sheeple are living in the thousands of new apartments being built in the city centers. They don’t own a car and use public transportation and Uber/Lyft since they shop online and have their groceries delivered to their door (not sure what they will do when the SHTF, but then that isn’t my problem). CA is taxing everything, so the price of gas is too high for many people to drive. Lot of reasons besides tariffs.
5,000 auto workers to be laid off ??? No surprise. This sort of thing happens to auto workers at the end of every business cycle. (Auto Markets are SATURATED from overproduction). Next will be the steel workers as auto manufacturers cut back purchases of cold roll steel. Bethlehem, Midwest & National Steel plants in the Midwest will lay off workers as a result. Happens every time.
“But it’s interesting that this tariff blame is being tossed into an article regarding British car makers that aren’t affected by them, either negatively or positively.”
You nailed it. Mac has an obvious “Free Trade” bias and it has been revealed from his many economic posts against TRUMP TARIFFS; and I don’t understand why, when that policy has been so detrimental to Americans and basic economic principles demonstrate that China has BY FAR the most to lose, and will.
There’s a great article on Zero Hedge detailing the carnage that these preliminary tariffs are causing in China. I will find it and post the link. 🙂
Here’s the link and this is BEFORE tariffs really begin to bite; or before the BIG tariffs are imposed. The price paid by American consumers is miniscule as consumer demand will decline seasonally and cyclically after the first of the year.
China is between a rock and a hard place and there is nowhere to hide. There is no good solution for China, only bad & worse choices. If Xi loses face he will have to resign or face the wrath of the population & the Party.
China would be smart to eat CROW and live to fight another day. Lucky for US, they are not that smart. 🙂
I don’t buy new cars, I buy used and fix them when they break.
Other than a lift I have everything needed to fix a car. What tools I don’t have, I order. One tool is far less than one hour of labor at a shop.
I do pay attention to car prices and I know Jag/Range Rovers are not cheap. GM is on my no-buy list due to Obama screwing GM Bond holders over in favor of the Democrat UAW union and Fords are too expensive to buy and repair.
Bottom line is the cars cost too much! $70,000 for a vehicle is obnoxious!
Land Rovers are just Bronco II’s on steroids. Way over priced for the average buyer. 🙁
Rellik, I also buy used but I still have to take it to someone who knows what to do when it breaks. I’m just looking at older models of American brands. I couldn’t pay $70,000 for a vehicle even if I wanted to. I find decent old trucks for sale on craigslist for between $3000-$7000 all the time. Beats the HELL out of $70,000. I go to a private owner and pay cash only. Financing is for rich people.
A few things I left unsaid.
My newest vehicle is a Mazda 2004 B4000 4WD
(AKA Ford Ranger). I just replaced
the rack and pinion steering unit in it.
I hate working on Fords.
You have to get creative when you need parts
sometimes. Most shops don’t know how to deal
with that, they generally just throw parts at
a problem to get you out of there quick.
Which makes for a pi$$ poor repair.
Some parts you just can’t get unless you strip
them out of a junkyard vehicle yourself.
I once stripped an exhaust system out of a
Chevy Luv truck while laying in the mud in
a Rancho Cordova, CA junk yard. My reward,
a almost brand new
exhaust system for $25.
A shop won’t do that.
I can go on and on.
When you get older vehicles,
keep in mind parts for repair can be hard to get
easily and may be costly when they can be found.
The shop doesn’t care as they have your car.
You will pay.
Do “Due diligence” when buying used.
The internet is your friend. If you can’t
do it, pay someone else to inspect the vehicle.
they should spend at least 4 hours on it. I use
the Ford certified pre-owned 172 point checklist.
And Ford boasts that they have a pickup priced >$100,000.
Who will weep when CEOs are eating dog food?
What’s to be expected when the average job pays less than $15/hr and the average vehicle costs over $20k? I bought a brand new 1976 Datsun two-wheel drive pickup made by Nissan in 1976 for $3600..Today the average two-wheel drive pickup costs at least $15k..The wages today are not keeping up with the increasing cost of living..Back in the 70’s a job paying $15/hr was considered a pretty good job,but today $15/hr is barely making ends meet,and if you have a mortgage/rent and vehicle payment on top of that you’re going to struggle..You better get use to eating a whole lot of balogna sandwiches and Ramen noodles,and use water for your cereal instead of milk..
Unless you’re an unskilled and uneducated fast food or janitorial type worker, the average job pays quite a bit more than 15 an hour.
Anonymous, good points. Let me add that a person has to make at least $50,000 a year just to qualify for a car loan AND have the right kind of credit history to along with that. And there’s still no guarantee you’ll get approved for that loan. I know this will sound crazy but to me credit is a luxury. After the first of the year I’ll have some kind of old truck for cash. Financing is a luxury that’s off limits to me. As long as craigslist is around I’ll be just fine. Besides, what else can people with credit problems do?
I liked when people constructed their own SUV’s and motorcycles, from scratch, and don’t see the need for a monolithic auto industry.
My daily driver for 10 – 15 years now is a 97 ford escort wagon w/5 speed manual. 181k.
The underbody rust seems the most serious issue.
Have looked at other vehicles. The prices seem high, even for high mileage units.
To me anyway.
I honestly do not understand how folk can afford these new cars.
The average HOUSEHOLD income in America ie two adults+ (due to 33% of 18-39 years olds living at home) is $53,500.
It’s not sustainable. It is not conducive to adequate disposable income for a new vehicle. What’s worse is most people can’t be shade tree mechanics anymore due to diagnostics computers and the electronics.
This means to survive requires fixing up old vehicles and likely being able to remove parts from nonfunctional vehicles for parts. It is as vital a skill as carpentry.
The average American does NOT have $500 in savings therefore they are one mechanic bill from being trapped into putting it on a credit card. Buying a vehicle is out of the question without finding new income streams.
This car situation and the work opportunities are like Cuba.
I don’t know about the region of Tennessee (Anderson and Campbell counties) near Rocky Top today, but in the past, there used to be major chopshop operations there. Why? Your car, particularly a new car is worth way more in parts versus a working vehicle.
I suspect that as the economy tanks and more people have to buy used vehicles and maintain them, that chop shops will flourish.
A car thief steals the vehicle and then it’s chopped because it’s too much trouble to sell it. It’s way easier to disassemble then to assemble.