Jaguar Land Rover bosses announced they will close a plant in the West Midlands but released details of a new model the LRX.
Jaguar Land Rover (JLR) have been hit particularly hard in the recent times as new car sales have slowed and larger vehicles replaced with smaller more economical ones.
JLR’s owners, the Indian giant Tata, have struggled to keep costs down and as a way of rectifying the deep losses they have decided they will close either the Castle Bromwich Jaguar plant in Birmingham or its Land Rover facility in Solihull. The unions have protected job losses in the short term but the future cuts will be inevitable.
"This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands," Chief Executive David Smith tells press.
It is not all doom and gloom however as the company also announced they will be releasing a new model, which will be the smallest Land Rover ever made.
The Land Rover LRX concept has done the rounds at the motor shows and was well received leading to the decision to put it into production. Despite losses in the West Midlands about 800 new jobs will be created at its Halewood plant on Merseyside, which will start building the new small Land Rover.
"The plan includes decisive actions to see through the next 12-18 months as markets recover and positions the company to grow and prosper in the future. It includes a new and expanded range of products and environmental technology, delivered through streamlined and competitive costs and a new manufacturing strategy," the firm said in a statement.
Phil Popham, managing director of Land Rover said:
"The production of a small Range Rover model is excellent news for our employees, dealers and customers. It is a demonstration of our commitment to investing for the future, to continue to deliver relevant vehicles for our customers, with the outstanding breadth of capability for which we are world-renowned."
E. Dooley
29/09/2009
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