Credit crunch forces Jaguar to cut production
Birmingham
Post
XF might be a critical hit, but punters aren't buying its bigger brother, the
XJ...
Jaguar has joined a growing list of carmakers to cut production
as the credit squeeze and economic downturn continue to hit sales. The Indian-owned
company said it was responding to market conditions by “taking a little
bit of volume” out of production of the flagship XJ sports saloon - the
current model of which is likely to be replaced next year - and the XK sports
car.
Jaguar would not spell out the extent of the cuts at its Castle
Bromwich factory in Birmingham, but The Birmingham Post understands that between
200 and 300 fewer cars will be built between now and the end of the year. That
would equate to about a week’s worth of production for both the XJ and
XK.
Production of the XF saloon car, which has been a huge success
since it was launched in March, and for which Jaguar has a big advance order
book, is not thought to be affected. The company did confirm, however, that
280 workers transferred from sister company Land Rover’s Solihull factory
to help meet the high initial demand for the XF have now returned to Lode Lane.
Jaguar sales have risen by about 13 per cent so far this year thanks
to the global popularity of the new car but Land Rover has lost ground as high
fuel costs hit sales of 4x4s. Land Rover has already announced cuts in production,
including the suspension of the Range Rover night shift and four-day working
on some other lines, as its sales ebb away from the record levels seen in the
past three years.
Jaguar and Land Rover, which were taken over by Tata Motors in
June in a £1bn deal with previous owner Ford, will reduce volumes even
further by extending the annual autumn shutdown in October from one week to
two. Production levels are also under review at Jaguar Land Rover’s plant
at Halewood on Merseyside which produces the Land Rover Freelander and the Jaguar
X-Type.
“The actions we are taking currently do not involve lay offs
or redundancies, although this cannot be ruled out in future,” a JLR spokesman
said yesterday. With car sales falling throughout Europe, Toyota is cutting
production of Auris and Avensis cars at its UK plant at Burnaston, near Derby,
while Bentley has moved to a three-day week at Crewe.
Analysts say the industry is suffering from the credit squeeze
– which is making it harder for dealers to get three-year consumer finance
deals underwritten by the banks – and the general economic downturn. On
a brighter note, British buyers get their first chance to see the new MG TF
sports car today as dealers around the country stage a series of open events
to showcase the roadster.
The vehicles on display, all produced at Longbridge, are special
editions called the TF LE500 and will retail for £16,399. The limited
edition cars, produced to mark the rebirth of the iconic brand, feature a host
of extras to try and entice buyers. Features include 16” alloy wheels,
premium in-car audio with iPod connector, leather seats, upgraded brakes, rear
parking sensors and a hard top. Although only 500 of the special editions have
been made, they are already proving popular, with around 80 per cent pre-sold.
Once the initial 500 are sold, the factory will revert to producing
basic specification vehicles although the extras will be available as options.
The company’s Chinese owner, Nanjing Automobile (NAC), a division of Shanghai
Automotive, has so far signed up around 50 dealers in the UK and Ireland. It
plans to move into the mainland European market next spring and English-speaking
markets such as the Middle East and South Africa beyond that.
The new MGs are planned as the start of a new family of cars to
be produced at Longbridge. NAC has said it intends producing a new mid-range
car at the factory from next year followed by a series of others including a
new sports car to replace the TF.
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