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Jaguar Land Rover to cut thousands of UK jobs

LONDON — Britain's biggest carmaker Jaguar Land Rover (JLR) is set to cut thousands of jobs as the company faces lower demand in China and a slump in sales of diesel cars in Europe. The central English firm builds a higher proportion of its cars in Britain than any other major or medium-sized carmaker and has also spent millions of pounds preparing for Brexit, in case there are tariffs or customs checks. Britain's business minister Greg Clark said on Thursday it is clear why a no-deal Brexit would add to the problems with further costs and disruption. JLR lost 354 million pounds ($450 million) between April and September 2018 and had already cut around 1,000 roles in Britain, shut its Solihull plant for two weeks and announced a three-day week at its Castle Bromwich site. Its Chief Executive Ralf Speth warned in September that the wrong Brexit deal could cost tens of thousands of car jobs and posed a threat to production at the automaker. The Tata Motors-owned company, which employs around 40,000 people in Britain and has boosted its workforce at new plants in China and Slovakia in recent years, unveiled plans to cut costs and improve cash flows by 2.5 billion pounds last year including "reducing employment costs and employment levels." Those cuts will be "substantial" and run into the thousands, the source told Reuters. "The announcement on job losses will be substantial, affecting managerial, research, sales, design," said the source, who spoke on condition of anonymity, not affecting production-line staff "at this stage." The company declined to comment when contacted by Reuters on Thursday. Ford also said on Thursday it will cut thousands of jobs in Europe, exit unprofitable markets and discontinue loss-making vehicle lines as part of a turnaround effort aimed at improving profit margins in the region. Brexit warnings JLR, which became Britain's biggest carmaker in 2016, had been on course to build around 1 million vehicles by the turn of the decade, reported on Thursday a 4.6 percent drop in full-year sales to just under 600,000 vehicles. Demand in China, which had once been one of its strongest countries but has since been hit by a slowdown, fell by 21.6 percent, the biggest drop of any of its markets. "The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence," said Jaguar Land Rover Chief Commercial Officer Felix Brautigam.

Frankfurt Motor Show Notes: Why Jaguar decided to build an SUV

It was inevitable. Jaguar had to make an SUV, and that notion became reality this week with the debut of the F-Pace, an all-wheel-drive five-seater that will launch in the United States next spring. Some purists may cringe. But in an era when Porsche, Bentley, Lamborghini, Rolls-Royce, Aston Martin, and other traditional luxury brands are all building or (planning to build) SUVs, Jaguar had to evolve. While it seems like a leap for Jaguar to make an SUV, longtime design director Ian Callum said it's been in the works for years. "The first time I was asked the question was when I arrived 16 years ago," he said. So in 1999 (and probably well before that), Jaguar was already thinking SUV. What took so long? "It wasn't a priority," Callum said. Jaguar was concentrating on fixing its existing lineup, which was pockmarked with holes and poorly selling products, like the X-Type. Along the way, Jaguar and sister brand Land Rover were sold by Ford to Indian conglomerate Tata Motors. Flash forward several years, and Jaguar and Land Rover are both experiencing a resurgence in the United States and around the world. Jaguar's lineup is flush with the E-Type's modern successor, the F-Type, plus a new version of the XF. The XJ received a 2016 freshening, and the smaller XE sedan is on the way. Jaguar put its house in order as other factors conspired to make a crossover timely. Fuel prices stayed relatively low, and consumers in the US and China remained steadfast in their love for utility vehicles of all stripes. Making a Jaguar SUV became a priority. "The world was telling us in no uncertain terms this is what they wanted," Callum said. "Not to be in the sector would be a little naive for the sake of purity." Jaguar proved its intent two years ago when it revealed the C-X17 crossover concept at Frankfurt, and the final production model is close to the prototype's striking looks. "I thought we managed to maintain that spirit," Callum said. It's a true Jaguar, with cues from the F-Type, 1968 XJ, and other famous models. Who would have thought Jaguar would make an SUV? "I certainly didn't," Callum admitted. But the F-Pace is here. If Callum is okay with it, purists can be, too. Quick Hits Opel retrenches for 2016 and beyond Opel used the Frankfurt show to display its new generation of the Astra, a critical vehicle line for the German division of General Motors.

2016 Jaguar XF First Drive [w/video]

Jaguar has never had a problem with style or driving joy. Every generation of the British brand's vehicles – with excuses made and accepted in advance for S-Type and X-Type and other outliers – has offered compelling styling and great performance. New kid XF was no exception when it was introduced in 2007. The car's sheetmetal pointed the way forward for the fully up-to-date range we see now, and its confident engines and handling chops were on pace with the best Bimmers, Benzes, and Cadillacs. The first-generation XF made some hay for Jaguar, selling around 280,000 copies through 2014. But those annualized rates still represented a blip on the luxury midsize radar when viewed against the backdrop of the German Three's numbers. Part of that sales story has been down to the E-Classes and 5 Series of the world being consistently excellent, to be sure. But a lot of the blame can be found in Jaguar's historic weak spots. Grace and pace the brand had in spades, but consumer perception of quality and reliability just weren't there, pricing was typically near the top of the class, and the residual values of the cars were low (a combination of all three factors, most likely). Of course, Jag would love to sell a few more cars. But this time, instead of simply building a great-looking, great-driving new XF (which is absolutely the case), the brand is doing some clever non-engineering-based things to put more big cats in more garages than ever before. The tradeoff of very good ride quality is worth the minute amount of roll. After flying all they way to Spain – Pamplona and the Navarra Circuit, by way of Barcelona and a Range Rover adventure you'll hear about soon – I would be remiss not to tell you how the new XF goes down the road. Some 150 kilometers (93 miles) of motorway and challenging b-roads lie between the city with that annual livestock problem and the 2.44-mile, FIA approved racecourse. A route that led me to understand that this XF, in my case the 380-horsepower XF S, has gained more than it has lost in the generational changeover. The company is fully committed to aluminum for its midsizer, with the new car now using a body structure that's 75-percent built from the stuff. I'm told that means a body in white that weighs just over 600 pounds, and an overall weight savings of 11 percent. Body stiffness has been raised by 28 percent in the process.