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14 April 2018, 01:48 | Yvette Williams
Jaguar Land Rover to shed 1000 contract staff
Britain's biggest carmaker is understood to be cutting output and not renewing the contracts of agency staff at its Solihull plant, while hundreds of permanent staff could be switched from its Castle Bromwich site to Solihull.
It continued: "We are, however, continuing to recruit large numbers of highly skilled engineers, graduates and apprentices, because we are over-proportionally investing in new products and technologies".
The company stressed it remains committed to its United Kingdom plants, having invested more than 4 billion pounds since 2010 to future-proof manufacturing technologies to deliver new models.
Speaking to Sky's Ian King in March, chief executive Ralf Speth had said: "The economy is weaker in the United Kingdom than in any other European country but it's also quite clear that the diesel discussion, additional taxes on the latest technology have created a reaction in the consumer base". Diesel demand fell by 37.2% last month.
Jaguar sales have fallen 26% so far this year and Land Rover dropped 20%. JLR employs around 40,000 people across six sites in the UK.
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Last year, JLR's British plants - which also includes the factory in Halewood - produced 532,107 vehicles last year.
Jaguar sales have so far fallen by 26 per cent in the first three months of 2018, while Land Rover registrations in the United Kingdom are down 20 per cent.
Diesel sales account for around 90% of the brand's overall sales in the UK.
Earlier this year the carmaker said it would cut production because of Brexit uncertainty and changes to taxes on diesel cars - the United Kingdom has increased the Vehicle Excise Duty (VED) rate for diesel cars by one band in the first year.
"This is desperately bad news for all those affected and a worrying sign of how the deep uncertainty around Brexit is continuing to damage Britain's economic performance", said Peter Kyle MP, a member of the pro-Remain, Open Britain campaign, condemning the government's decision to rule out single market and customs union membership.
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