Updated 3:12am 16 April 2012

£281m loss at Jaguar Land Rover could mean more job cuts

Jaguar Land Rover

“It has subsequently taken unprecedented actions to cut costs, including reduced production volumes, significant cuts to investment plans and some 2,000 job losses.

“The company is currently in the process of launching several new Jaguar and Land Rover models to the international market, which are expected to help support a regeneration of sales volume over the coming months.”

Halewood has seen staffing fall as agency and temporary workers were released and a group-wide voluntary redundancy scheme was offered to permanent staff.

Other cost-cutting measures include the offer of sabbaticals to staff who have agreed to a one-year wage freeze and a four-day working week in exchange for a pledge of no compulsory redundancies for two years.

The ECHO, sister paper the Daily Post and fellow titles covering JLR plants in the West Midlands, launched the “Support JLR” campaign in December asking the Government to give financial guarantees to help the company through the downturn.

In April Tata received agreement for a £340m loan from the European Investment Bank but is currently in talks with the Government over the terms for guaranteeing this loan, as well as other financial support for the group.

Talks were reported to have broken down last month, but the Department for Business, Innovation & Skills told the ECHO this week that negotiations were now progressing well.

Yesterday the overall Tata Motors group reported a loss of £267m in the year to March 31.

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