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Jaguar Land Rover cutting production in face of falling demand

LONDON — Jaguar Land Rover will reduce or stop production on certain days at two of its British factories over the next few weeks as Britain's biggest carmaker pursues cost-cutting measures in response to falling demand. JLR posted a 2.3% drop in retail sales in the three months to the end of December and has targeted billions of pounds worth of savings to tackle falling diesel demand in Europe and a tough sales environment in China. The firm will halt production on selected days over a four-week period from late February at its Castle Bromwich factory in central England and stop production on some half or full days at its nearby Solihull facility until the end of March. "The external environment remains challenging for our industry and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success," the company said in a statement. "We have confirmed that Solihull and Castle Bromwich will make some minor changes to their production schedules to reflect fluctuating demand globally, whilst still meeting customer needs." The move is not connected to coronavirus, a spokeswoman said, which prompted Fiat Chrysler to warn on Thursday that a European plant could shut down within two to four weeks if Chinese parts suppliers cannot get back to work. Related Video:

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.

Jaguar's next-generation XJ will be electric, but it won't bend design rules

Jaguar's next-generation XJ won't roar like a lion or purr like a kitten. It will ditch gasoline-powered six- and eight-cylinder engines in favor of electric power, the British company confirmed, but that's not an excuse to completely change its proportions. It will still be recognizable as a member of the decades-old XJ family. "We're there to make the best-looking cars we possibly can, so the new XJ, it does have a [hood] on it. It's a very, very elegant shape; it's probably a little bit more traditional than the I-Pace," explained Julian Thomson, the man who replaced Ian Callum as Jaguar's head of design, in an interview with magazine Auto Express. The aforementioned I-Pace is a segment-bending crossover with short overhangs and an unusually spacious cabin; it takes full advantage of the possibilities offered by compact electric technology, and it looks like nothing else on the road. Thomson confirmed his team won't take the XJ in this direction, and spy shots (pictured) taken far north of the Arctic Circle illustrate his point while keeping finer details under a swirly black and white wrap. Although it's built on a massive lithium-ion battery pack, the next-generation XJ seemingly wears the typical long front, short back proportions that have characterized the model for generations. The most dramatic change is the presence of a hatch instead of a trunk lid. It was added to give the sedan a more fastback-like appearance than its predecessor; it has nothing to do with what's under the sheet metal. The XJ has been the segment's underdog for many years so keeping the classic three-box silhouette would have been marketing suicide. "It's going to be a very, very luxurious, very, very calm, tranquil piece of transportation. But, it's not overtly flashy, it's not overtly expensive," summed up Thomson. His comments suggest it will be a better match for the Mercedes-Benz EQS, which is being designed around comfort the firm is known for globally, than for the Porsche Taycan, which stays true to the badge on its nose by putting a greater focus on performance. The electric version of the seventh-generation BMW 7 Series due out in the early 2020s will split the difference. Jaguar is putting the final touches on the next-generation XJ, and it plans to introduce the model before the end of 2020. It's too early to tell if the big, silent cat will make its debut at one of the few auto shows left on the calendar, at a standalone event, or online.