Struggling Jaguar Land Rover planning to extend two-week summer shutdown

| July 13, 2009

The global economic downturn has resulted in a slump in demand for big-ticket items, such as cars. This has affected carmakers worldwide with many cutting back on production, slashing jobs and seeking funding to see them through the downturn.

Jaguar Land Rover (JLR), the Midlands carmaker, is no exception and according to The Sunday Times, executives at the struggling carmaker are proposing an extended shutdown of its UK plants.

However, a spokesman for has denied the report and commented:“ We always have a summer shutdown. The two-week shutdown begins at the end of this month and there are no plans to change that. We have always said there may be a need in the future to take further action but there are no plans at present.”

So far the carmaker, which has a UK workforce of around 15,000, has managed to avoid the lengthy shutdowns that fellow carmakers have been forced to implement.

Honda was forced to close its Swindon plant for three months, while Tata Motors recently revealed that growing losses had sent it plummeting more than £300 million in the red – its first annual loss in seven years.

In a bid to boost the UK’s ailing car industry, the Government launched a scrappage scheme and was launched on 18 May.

The £300 million initiative will give motorists £2,000 when they scrap their vehicle (which must be at least 10 years old). The Government will contribute £1,000, with the remaining £1,000 funded by car firms.

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