JAGUAR Land Rover is cutting production at Halewood in response to falling demand.
The Indian-owned company said yesterday it was reducing the number of daily shifts from two to one for the time being.
The plant, which employs more than 2,000 people, is introducing the measure from mid-January as part of the company’s strategy to deal with the worldwide slump in car sales during the credit crunch.
All production line workers clock on at 7am in what the company says it hopes will be a “short-term measure”. It said it did not intend to make any redundancies. .
Car sales worldwide have fallen dramatically since the credit crunch began last year. Luxury car sales in the UK have been particularly hard-hit, with Land Rover sales falling from 2,906 in November 2007 to 1,034 last month – a slump of 64%.
Figures released yesterday from the European Automobile Manufacturers’ Association show registrations of new Jaguar Land Rover vehicles fell 43% over the same period.
Dave Osborne, national automotive spokesman for Unite, welcomed JLR’s assurance on job losses, but said he wanted to meet the company soon to discuss the return of the double-shift pattern.
He said: “This shift change is deeply disappointing but not surprising in view of the deep recession that’s hitting the car industry. Automotive companies are suffering significant down-time and shift changes, and reduced volumes at Land Rover have been impacted by the downturn in demand in the US for SUVs.
“While it’s good to see there’s no job losses as a result, we hope it’s not long-term and will be seeking a meeting with the company in the immediate future to get those guarantees on no job losses.”
A JLR spokeswoman said: “This is a response to the global economic downturn and the effect on the whole motor industry. Like other manufacturers we are adjusting our production levels accordingly.
“All employees will be coming in to work. Those that aren’t directly involved in production will be doing other activities.
“Hopefully, this isn’t going to be a long-term option for us. We’ll continue to monitor the market to see how things go, and we’ll respond appropriately.
“We’re hopeful this is a short-term measure.”
The plant’s press shop, which presses panels for JLR vehicles and employs 400 people, will stay on a two-shift system.
BREAKDOWN IN THE MOTOR INDUSTRY: PAGE 6
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